subject: Negotiating With Credit Card Companies - How Much Can You Reduce Your Debt By? [print this page] Negotiating with credit card companies can help you to get relief from the debt that you have. The creditor may eliminate the debt that you have by at least 50% and if you are a person with a golden luck, you can get up to 70% elimination. This will however depend upon the potential of the negotiator.
The question is how will the negotiators achieve that? Remember that they are professionals and they do this every day! The professional you hire will ask you to go delinquent. The rule here is, "You need to follow"! This is because, the professional arbitrator will need to prove that you are in a serious financial trouble which is the end result of any unforeseen problem like a natural disaster, heavy fluctuations in the adjustable rate mortgages or divorce or even any medical incident or loss of job!
The moment you go delinquent, the creditor will bounce on you will collection and threatening calls which will target you both direct accusations and emotional tortures. The wow factor for hiring a professional arbitrator is that these this can be avoided. The professional will mail a well formatted letter to the creditor stating the reason for delinquency and will back the same with appropriate proofs.
The creditor will sell off the debt to a collection agency when you go delinquent but before that, the creditor will wait for 3-4 months. The deal between the creditor and the collection agency will take place for as low as 20-30 cents per dollar. The negotiator or the arbitrator will then contact the creditor either in person or on phone and offer a better deal of 30-50 cents on the dollar.
The arbitrator will also threaten the creditor of charge off or bankruptcy filing. The creditor never want that because; if you file for bankruptcy the creditor will lose everything which is what it never wants. The creditor will therefore agree to the deal on the basis of the fact that it will mean 100% returns on investment for the collection agency and will eliminate the unsecured debt that you have by at least 50% of the outstanding amount and depending on the negotiation aptitude of the arbitrator, you can be lucky enough to get 70% elimination. Thus, if you are trying to negotiate with the credit card companies, it is better that you hire a professional settlement firm.
Debt settlement is a legitimate alternative to filing for bankruptcy. There are also other debt relief options available which is why it would be wise to speak with a debt relief specialist.
Negotiating With Credit Card Companies - How Much Can You Reduce Your Debt By?
