subject: Debt Settlement Tips - How To Negotiate A 50% Reduction On Your Unsecured Credit Card Debt [print this page] Debt Settlement Tips - How To Negotiate A 50% Reduction On Your Unsecured Credit Card Debt
These debt settlement tips will aid you in negotiating liability on your own. Debt settlement tips help you in understanding the entire process and the skills required to negotiate with your lenders. The advantages of negotiating on your own are that you do not have to pay any form of fees to gain relief; you negotiate the case on your own thus a lot of time is saved and you are aware about the abilities of your lender.
To negotiate on your own; you have to first threaten your lender. You have to tell him that you want to settle the liability amount and if you are not allowed to settle the amount then you will file a law suit o bankruptcy. This will shake the floor beneath your lenders feet and he will comply with you. This is because he is well aware that if you use insolvency; you will end up getting relief without paying him back a penny and he will suffer a huge loss if you do not own any valuable assets. The lender experiences default if he is not able to recover the lent amount of money.
To conduct the bargaining process yourself you should have appropriate negotiation skills. Your negotiations skills should be equivalent to the bargaining capability of a lawyer. A lawyer has very persuasive bargaining skills and he can crack a deal with any lender and this is why the settlement companies hire lawyers for settlement cases.
To bargain for reduction in the total accrued amount you should have complete knowledge of the laws of financial sector. There a certain gaps in the laws and these gaps can help you manipulate the lender and he will be forced to give you a deal. The lawyers hired by a settlement firm have all the information of the financial sector and they use this information tackle the lenders.
With you negotiation skills and knowledge of the laws of financial industry; you can get a good settlement deal. You settlement deal includes discount of 50% on the total borrowed amount; reduction in rate of interest you are liable to pay on the remaining amount and extra tenure for repayment of the remaining amount.
Keep in mind that a lender faces no loss when you settle the amount; thus he will not hesitate in providing you with reduction as he is being compensated by the government for the amount of money you do not pay back to him.
Debt settlement is clearly a better alternative than bankruptcy and due to the massive amounts of consumers in debt, creditors are agreeing to very generous debt settlement deals.
