Debt settlement is still a business transaction. You could have it your way through effective negotiation. Do you have a debt that you have not been repaying for the past several months or years? Have you fallen into a loan default? For sure, you want to clear your name, repay to settle the debt, and set your credit record straight.
Before you get into any debt repayment settlement discussion, be reminded that effective negotiation is a key to getting a good deal. Your lender/creditor at this point would only want one thing: to collect your balance or a part of your overall accumulated debt. Do not worry if your debt has gotten bigger due to interest payments and penalties. Lenders would always be willing to lower your debt settlement. That is much better than not collecting any repayment at all.
Getting into negotiations
Have you heard about ‘statute of limitations’? Lenders or their debt collection agencies are given a limited period to collect every debt. If the required collection period has passed, they could no longer use legality to secure any payment. The borrower would not be obliged to repay the debt, which would be categorized as collectible. It would be best if you could determine the statute of limitations set in your city, state, or country.
If you have discovered that the statute of limitations has already passed or is nearing, do not hesitate to let your lender know it. Remind them that it would definitely be to their advantage if negotiations could be finalized and debt would be settled before the time is up. You would be surprised at how lenders could turn desperate just to collect payment from you. Thus, the ball is in your hands.
At this point, you are ready to finalize the settlement amount. You could start by asking cancellation of all penalties and late fees. You would find that after deducting those costs, your remaining balance would be significantly trimmed. Do not stop there. The lender could still be pushed to the limits. Ask to slash your remaining debt by up to 50%. This is where negotiations could really take a shape.
Credit score deals
When negotiating to settle your debt, do not forget to take into consideration your credit rating. As you know, your credit score is tarnished until the lender clears your name and marks the debt as ‘paid.’ You could make your lender clear your name and your credit history as well. Ask them to do so as part of the settlement.
Once the lender agrees to all your terms, be sure to have every detail in writing. Do not make any payment or settlement unless a copy of the negotiation or finalised settlement deal is handed to you. Review the content to make sure all aspects of the negotiations have been noted. This way, you could be sure the lender would clear your credit standing even if you have negotiated for a very practical and cheap debt settlement.
Andrew has been working in the debt management industry and has been writing on debt relief and credit card debt for the last 3 years
Before you get into any debt repayment settlement discussion, be reminded that effective negotiation is a key to getting a good deal. Your lender/creditor at this point would only want one thing: to collect your balance or a part of your overall accumulated debt. Do not worry if your debt has gotten bigger due to interest payments and penalties. Lenders would always be willing to lower your debt settlement. That is much better than not collecting any repayment at all.
Getting into negotiations
Have you heard about ‘statute of limitations’? Lenders or their debt collection agencies are given a limited period to collect every debt. If the required collection period has passed, they could no longer use legality to secure any payment. The borrower would not be obliged to repay the debt, which would be categorized as collectible. It would be best if you could determine the statute of limitations set in your city, state, or country.
If you have discovered that the statute of limitations has already passed or is nearing, do not hesitate to let your lender know it. Remind them that it would definitely be to their advantage if negotiations could be finalized and debt would be settled before the time is up. You would be surprised at how lenders could turn desperate just to collect payment from you. Thus, the ball is in your hands.
At this point, you are ready to finalize the settlement amount. You could start by asking cancellation of all penalties and late fees. You would find that after deducting those costs, your remaining balance would be significantly trimmed. Do not stop there. The lender could still be pushed to the limits. Ask to slash your remaining debt by up to 50%. This is where negotiations could really take a shape.
Credit score deals
When negotiating to settle your debt, do not forget to take into consideration your credit rating. As you know, your credit score is tarnished until the lender clears your name and marks the debt as ‘paid.’ You could make your lender clear your name and your credit history as well. Ask them to do so as part of the settlement.
Once the lender agrees to all your terms, be sure to have every detail in writing. Do not make any payment or settlement unless a copy of the negotiation or finalised settlement deal is handed to you. Review the content to make sure all aspects of the negotiations have been noted. This way, you could be sure the lender would clear your credit standing even if you have negotiated for a very practical and cheap debt settlement.
Andrew has been working in the debt management industry and has been writing on debt relief and credit card debt for the last 3 years
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