Debt is a frustrating thing, and these days it seems like everyone has some kind of debt whether it’s credit cards, a mortgage that is too high or maybe you racked up debt trying to be a day trader. However you got there, there comes a time when debt just rules your finances and you have no choice but to settle it and see what you can get. You can work with companies or lawyers that do this but if you want to try to settle debt yourself rather than pay someone else to do it.
1. Call the company directly and let them know that you are interested paying back your debt but you need them to make you a settlement offer to do so. When you make the call be polite and most of all be specific. If you can only afford one payment let them know what that is. If you are ambiguous with your request you won’t be doing anyone any favors and both you and the representative may get frustrated with the negotiation.
2. If you don’t like the answer the representative gives you ask to speak with a manager or their debt settlement department. There is a good chance that the operator you are talking to isn’t able to make debt settlement offers so arguing with them may not get you anywhere. Most companies have specific departments to deal with these types of issues and you are better off dealing with them if possible.
3. Don’t settle for any old settlement. When you negotiate you never start out by offering top dollar right? Well credit card companies are no different and they aren’t going to give you the best deal possible right away, so you may have to play a little hardball with them to get the best deal for you. Many times you can save 40% or more on your debt so anything less than that you should politely decline and see what they come back with. Even if you cant get a deal worked out on the initial call they will likely make you an offer down the line should you continue to miss payments.
4. Take very complete notes whenever you are dealing with someone. Many of these companies are very large so it is important to note who you spoke with, what they said and better yet get a case number. You should definitely try to get something in writing either via email, fax or regular mail because people can say things but there is really no way to prove it happened if the situation goes to dispute.
5. Lastly, and this is perhaps the most important point we can make here, make sure you understand the entire debt settlement agreement before signing your name on the dotted line. You need to consider things like late fees, interest charges and other fees that can really put you back in the same debt position you were in before the negotiation. Don’t just sign an agreement until you have read it and understand it. If you don’t understand ask questions of the company or better yet … someone you trust.
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