Negotiating For Debt Settlement - 5 Steps To Go

By Author: J.J. Yong
Total Articles: 962
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In the point of view of many people, when their debts have become overwhelming, the only way for them to get rid of the debt issues is declaring bankruptcy. However, in my personal view, filing bankruptcy is an irresponsible approach. We can eliminate our debts through negotiation. We can send our request to our creditors to offer for debt settlement. Seriously speaking, the whole process is not complicated. There are only 6 steps you need to follow:

Step 1:

Analyze your current financial ability carefully. Find out how much fund you have on hand. Then, work out the settlement amount based on the cash amount you have. Make sure you can afford to pay if your creditor agrees with your settlement offer.

Step 2:

Find the right timing to contact your creditor. The best time for you to call is when you have missed payments for more than 90 days. Get the right person who has the authority to deal with you. Inform the person about the financial hardship you are facing currently and ask for assistance in a sincere manner. You need to mention the settlement amount and the payment schedule clearly.

Step ...
... 3:

When you are bargaining with your creditor, you are reminded to protect your credit. Try your best to get the consent from your creditor to give a more favorable report to the credit bureau. It is always better to get your account to be reported as "paid" rather than "settled".

Step 4:

After you have obtained the approval from your creditor, you are reminded to get a written agreement from your creditor. Read all the new agreed terms carefully before making payment.

Step 5:

Make your payment according on the date agreed. You are advised to make the payment by check. Do not allow the creditor to access your saving account. After you have gone through the 5 steps above, you will become debt free.
For more information about debt settlement letter and debt settlement companies, visit DebtSettlementPoint.com.