Top 10 Tips For Debt Negotiation Process

Posted On 9:41 PM Tag
Do you know how wonderful if you have a powerful negotiation skill? You will be able to negotiate with your creditor for a fair deal especially when you are burdened with debts. Below are the top 10 tips you need to know while you are preparing yourself for a debt negotiation process.
  1. You should obtain detailed information from the National Consumer Law Center or the state's attorney general to know your rights before contacting your creditors.
  2. You are advised to read the contracts that you have signed previously to get a better understanding about your contractual obligations.
  3. It is necessary for you to assess your current financial situation by working out your monthly net income and expenses.
  4. As a rule of thumb, you are advised to negotiate with your creditors to settle your debts at the amount below 40% of your total outstanding.
  5. Make sure that you are speaking with the account managers and not the representatives. This is because the account managers usually have more authority when it comes to final say.
  6. Keep a calm tone and be friendly during the negotiation process. You need a lot of patience and don't lose your temper.
  7. In order for you to stand a higher chance to succeed in the process, you may stress to your creditors that you will file for bankruptcy if you are not offered a favorable debt settlement.
  8. When you are given a favorable settlement, you need to specify whether you will be paying the debt settlement amount in one lump sum or by monthly installment.
  9. It is important for you to request for debt settlement agreement from your creditors.
  10. Besides agreement, it is also a must for you to request for a letter of confirmation for the settlement amount that both parties agree upon.

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