If you have decided to settle your credit card debt, you may be wondering if the best alternative is to hire a debt settlement company to negotiate with your creditors for you. The reality is that handing a debt settlement on your own is a much better alternative. You will need commitment and dedication to achieve the goal. You will also need to have patience through the debt settlement negotiation process. Many people are quite successful in settling debt and you can do it as well. You need to keep the following points in mind for your debt settlement:
What Debts Can You Settle?
You can settle only unsecured debts such as credit cards debts, stone cards debts, medical bills, bounced checks and personal loans. Student loans also fall in the category of unsecured debts but are difficult to settle because there are many governmental protections in place that prevent them from needing to accept a settlement
Keys to Negotiation
– You should have cash set aside for debt settlement before starting the negotiations.
– Before calling your creditor, you will need to have your most recent accounts statements in front of you as well as any offer of a settlement that was sent to you by the claimant or collection agency.
– Wait for the creditor to offer their price, this way you will get any idea as to where they are at. You do not want to accept their first offer, so their first offer should just be considered a starting point.
– During the call you need to tell them clearly from very start that you are intending to settle your debt. Do not get impatient if you experience rude attitude from the creditor in response. This should not be a surprise, usually collectors do not have such an approach. Do not get aggravated. If you get refusal for settling the debt from the person to what you are talking, ask him to talk to their supervisor.
– Behave as a professional, you do not want to show anger, as this will only hurt your cause. You should also avoid using disrespectful language.
– If you did not get a good response even after talking to supervisor, you do not need to give up. Write to the head of collections and president of the company. You need to write exactly that what you are ready to pay. Those people who are responsible for correspondence for the company may be more willing to listen your offer.