subject: Making A Debt Settlement Deal - How To Get The Best Deal From Your Creditors [print this page] Making a debt settlement deal is quite easy but, what makes it difficult is to get the best deal from the creditors. If you negotiate with the creditor by yourself with a non-professional approach, the creditor will take the upper hand and the maximum elimination that you can get is 30%. This definitely not the best that you can get. The best that you can get is up to 70% elimination and minimum of 50%. This is possible when you hire a professional debt settlement company.
Hiring a professional settlement company is not easy. This is because of the fact that you need to hire a company that is honest and dedicated to its job and has a good track record. To get rid of the shady companies, the Federal Trade Commission has put a ban on the collection of upfront fees by the settlement companies from the consumers. They can collect their service fee only after they have actually eliminated the debt of a consumer.
After you hire a professional debt settlement company, the negotiator from the company will ask you to stop paying the creditor in order to prove that you are in financial trouble. Once you stop paying the creditor, the lender will wait for a period of 3-4 months and then contacts a collection agency and sells of the debt to the agency. The agency agrees to pay only 20-30 cents for each dollar that they collect from you.
The negotiator keeps a track of this deal and when the deal is complete, the negotiator contacts the creditor and offers a better deal of 30-50 cents for each dollar and also threatens the creditor that you will file for bankruptcy if the creditor turns down the deal. The creditor will never want you to file for bankruptcy because once you do so, the creditor will lose all its money.
The creditor therefore agrees to the deal on the ground that the new deal will mean 100% return on investment for the collection agency and eliminates the debt that you have by at least 50% and depending upon the negotiation power of the negotiator, the elimination my be up to 70%. This is how you get the best deal from you creditor by making a debt settlement deal.
Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement.
Making A Debt Settlement Deal - How To Get The Best Deal From Your Creditors
