Reducing Debt Through Debt Negotiation
Debt negotiation is the process of negotiating with creditors or collection agencies for debt settlement. Through effective debt negotiation, it is possible to have the balances reduced on outstanding credit card balances, personal loans and other types of unsecured debt. generally, only unsecured debt can be reduced through debt negotiation services.
You can either negotiate directly with the collection agencies or use professional debt negotiation services to negotiate for you. If you are going to try debt negotiation on your own, there are a few strategies and tips to keep in mind. By following some simple steps, you can save a significant amount of money and get out of debt fast.
Tips for Negotiating with Collection Agencies
The first thing you may wonder is how much to offer when settling the debt. In general, you should offer a lower percentage of the full balance for older debts. A good place to start for general negotiation purposes is about 25 percent of the outstanding balance. The company may come back with a higher percentage, and you can negotiate from there. A collection agency with an old debt will likely accept the offer, rather than risk collecting nothing on the balance.
Don’t seem over eager to settle. This is one area where professional debt negotiation services have a clear advantage. It is easy to get nervous and agree to the first offer made by the company out of fear or mistakenly thinking this is the best deal you can get. You can usually get a better deal by making a counter offer.
Get everything in writing and keep detailed records. If you send correspondence to collection agencies, keep copies and send everything with return receipt requested. If you come to an agreement for debt settlement, get the terms in writing. This will protect you should the company fail to keep up to its end of the deal.
In addition, keep a log of all telephone correspondence with the collection agency. Every time you interact with someone, write the name of the person, what was discussed and the outcome of the discussion. Also ask for the name of the person’s supervisor, for future reference. This will help you in future conversations.
When negotiating the terms of the settlement, remember your credit report. Improving your credit score is a goal of debt settlement. you need to negotiate how the debt and payoff will be listed on your credit report. This can make a big difference in your credit score and you need to negotiate the terms before you make any payment.
Professional Debt Negotiation Services
Debt negotiation is difficult for many people. If you are a great negotiator and feel confident, you may get great results. However, if you are not comfortable negotiating or get intimidated by scare tactics, a professional may be the best choice. Often, a professional will get a better deal than an individual because they know how to negotiate with collection agencies.
When choosing debt negotiation services, you should select a company with a track record of success in negotiating with collection agencies. Integrity First Financial Services LLC has helped thousands of individuals get out of debt through negotiating debt settlement with creditors. Visit our website to learn more about debt settlement programs and debt negotiation services.