Debt Settlement: The Best Ways To Negotiate

There are many ways to get out of debt and to improve your credit standing. It all depends on your discipline and willingness to settle all your dues. Being financially responsible is the first step towards being debt-free, but first you may need to settle your existing debts if you are in over your head. If you are interested in debt negotiation settlement, there are several tips to consider.

Debt Consolidation

One option for debt settlement is through debt consolidation. This involves you taking out a new loan with better terms to pay off all your old debt.  If you have good credit standing and your income to debt ratio is low, you may be eligible to avail of these loans. A personal loan, a mortgage loan, or a credit card balance transfer can all be used to consolidate debt.

Debt Settlement Negotiation

If you can't qualify for a debt consolidation loan, or if you want to settle your debt for less, then debt negotiation settlement may be a better option. The most common way to settle debts is by employing the services of a debt settlement company or attorney to work on your behalf.

With their assistance, you can expect to have as much as 60 percent of your debts forgiven: 

  • The negotiation process begins by you providing the attorney with your debt information
  • Then the company will contact your creditors in order negotiate settlement.
  • Your attorney may negotiate a one time lump sum payment, or a monthly payment plan that allows you to pay a lesser amount each month.

During this process, your creditors may reduce your interest rate or may simply remove a portion of your entire unsecured debt. If you are offered this type of solution, this type of scheme will help you save money... but make sure you understand it will adversely impact your credit to settle less than for what is owed. 

Getting Help

It is important however that you only employ the services of a reputable debt settlement attorney. A skilled and experienced debt settlement lawyer will be very beneficial to you, as they may have an established relationship with creditors and can help you to negotiate the best possible deal. Getting the help of a debt settlement attorney during negotiations can thus help you escape the possibility of having to file for bankruptcy.

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