subject: Making A Debt Settlement Deal - Tips To Help You Get The Best Deal [print this page] America is still in the middle of a recession and thousands of Americans are still facing problems because of this. They have lost their jobs are now unable to repay their debts. They are becoming defaulters. It is because of this reason that they are finding is easier to get rid of their debts by making debt settlement deals. However, there are certain tips that they must keep in mind to make sure that they get the best deal from their creditors.
Tips to help you get the best deal:
Make sure that the amount of unsecured loan that you have is at least $10,000. This minimum amount is defined by the government. It may happen that the unsecured loan that you have is scattered over different credit cards from different creditors. In that case, you need to consolidate the debt so that the sum of all the loans taken together turns out to be $10k or more. Consolidation also ensures that the time taken for settlement is minimized.
For consolidation, you can get a consolidation loan and pay off all the debts using that money. You can also go for balance transfer in case the unsecured loan spoken of is in form of credit card dues.
Avoid negotiating with the creditor on your own unless and until you have a complete knowledge of the banking system and you have excellent negotiation skills. This is because of the fact that in case you lack those elements, the creditor will take an upper edge and the maximum amount of elimination that you can get in that case will be 30% or less. It is because of this reason that you need to hire a reputed debt settlement company which has a good track record. The creditors like to speak with the settlement companies because of the professional approach they have. Remember that the Federal Trade Commission has put a ban on the collection of upfront fee from the consumers by the settlement companies. Thus, if a company asks for upfront fee, avoid that company.
Follow the advice of the negotiator from the settlement company. This will help the negotiator to prove that you are in financial trouble and the amount of elimination that the negotiator can earn for you is at least 50% and a maximum of 70%.
Keep these tips in mind when you are opting for debt settlement as a method of debt elimination and you can get the best deal from your creditor.
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 - Tips To Help You Get The Best Deal
