How to Negotiate Successfully With the Debtors for Debt Settlement?
By Alan Starc
Posted: 12th November 2013 15:30
Like most people out there, you too have some undesirable debts and it seems that you are almost burdened with them badly. Instead of giving it up completely, you can try out some smarter methods like that of debt settlement. In the present unstable economic condition, almost all the creditors are open for debt settlement and you just need to do it efficiently to profit as much as you can. Here are some quick tips and tricks to apply to make a favourabledeal with your lender –
· State your financial status clearly– If bankruptcy is the only available option to you, it is obvious that you will mention it in your deal. But instead of doing it directly, state it in a twisted manner. For instance, you can tell your lender that since you are not able to pay off the full amount of the debt, you are seeking some other alternatives. If that is not possible, you might have to declare bankruptcy. Thus, this will lead your lender to give your case a second thought and he might offer some sorts of discounts on the deal.
· Always negotiate– No matter if the agency or you are sending the first correspondence, mentioning the offer make it a point to counter on the initial offer. It is most likely that you will be able to settle at least 50-70 %of the balance. It is advisable to start off at 70% less than the total balance and move up gradually from there.
· Try out other alternatives– If it seems that that it is not possible to make any kind of negotiation on the deal, try to manage the debt with the help of some other alternatives. There are a number of lenders offering small loans online today and you can get approved for one even with a poor credit score. Consider taking one of these to make up all your financial worries. Make sure you check out the rates of interest, processing fees, early repayment fees, payment terms and other such details with the different lenders before finalisingthe deal with any one particular lender, as this will help you avail the best available deals.
· Get everything in written documents– In terms of debt settlement oral agreements are significant and as studies have shown, most of the creditors and agencies usually abide by their word when it comes to removing the negative credit entries after the settlement. However, it is still advisable to get everything done in written documents, mentioning all the minute details of payment terms, all the correspondence from the initial debt settlement offer till the receipt of payment and completion of the entire process.
Alan Starc is a reputed online loan industry writer. He writes on a wide variety of loan related topics for leading loan websites such as UnitedFinances and others.