Negotiating A Debt Settlement Deal - How To Get The Best Debt Settlement Agreement

How to get the best debt settlement deal by negotiating a debt settlement deal

? Well, the secret lies in using in threat of bankruptcy. Yet another thing that can be counted as important is that of hiring a settlement company. The reason is that as an individual consumer, you may not be very well accustomed with the whole banking system and the approach that you take while negotiating with the creditor many not be professional. Remember that the creditors like the negotiators from the settlement companies have. The steps that you need to follow to get out of debt and get the best settlement deal are discussed below:

u The minimum amount of overall debt that you need to have is $10,000. This amount is defined by law and there cannot be any exceptions.

u The next thing that you need to ensure is that the debt is consolidated in one place. This is because; once the debt is consolidated, settlement procedure becomes faster and settlement goes down.

u For consolidation, you can get a consolidation loan. You need to use that money to repay the existing loans. If the debt you have is that of multiple credit cards, you can opt for balance transfer. Once the debt is consolidated, the real struggle starts.

u You need to higher a professional debt settlement company. Hiring a professional company that is trustworthy is difficult. This is because there are several shady companies which will make a fool out of you and eat up your money without actually helping. According to a new law from Federal Trade Commission, the settlement companies are now not allowed to collect advance fees from the consumers. This will be in effect from 27th October. They shady companies will then be thrown off the stage. Until then, you can search the Internet using Google or you can look for debt relief networks which have the list of most authentic settlement companies.

u Once you hire a settlement company, the negotiator will advise you to go delinquent. Follow the same. The creditor will wait for 12-16 weeks and still if you continue without paying, collection agency is hired by the creditor. The collection agency agrees to pays only 20-30 cents to the creditor for every dollar collected from you. The negotiator then contacts the creditor with a deal of 30-50 cents and also threatens the creditor of bankruptcy. The creditor never wants you to file for bankruptcy and hence agrees to the deal on the basis of the fact that it means 100% ROI for the collection agency and eliminates at least 50% and up to 70% of the debt that you have.

This is how you get the best settlement agreement and eliminate a huge chunk of the unsecured debt that you have.

Negotiating A Debt Settlement Deal - How To Get The Best Debt Settlement Agreement

By: ketty archer

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