subject: Debt Negotiation Programs - Your 5-Step Guide to Personal Debt Arbitration [print this page] In case your financial situation is hopeless; you can try negotiating your debt with your creditors. If all your cards have maxed out and you are struggling to meet even the minimum payment on your card then it might be an answer to your financial problems. These programs will help you in reducing the total debt amount so that it gets easier for you to pay off.
Stop making payments on your account: The creditors do not negotiate until an account becomes delinquent. So, stop making your payments on your account. Instead save this money to use during negotiations. Creditors settle debts based on various factors. One of the main risks is of filing bankruptcy. If the creditor thinks that the risk is high you might get a better settlement amount. Another reason can be, if the account is about to be sold to collection agencies. Under these circumstances it is better to settle the debt.
Choose the means of debt negotiation: You can either negotiate the deal yourself or you can take the assistance of professional settlement companies. Since the creditors are unwilling to let go a large amount of money which is rightfully theirs, they put up a very hard bargain. Settlement companies utilise all loop holes in the banking law to get the best bargain for their clients.
Contact your creditors: If your account is 90 days past due, your creditors will start sending you settlement offers. In case they do not, you can call them and inform them about your current financial condition and ask for a settlement.
Negotiate your settlement amount: You must start by offering 25 % of the total amount. A good deal will be settled with 40 % to 60% of the debt reduced.
Get your settlement in writing: Get all the terms of settlement in writing from the creditor.
Debt Negotiation Programs - Your 5-Step Guide to Personal Debt Arbitration
