It is true what they say that when you look for a credit debt settlement, you are always at the mercy of your creditor. They are sovereign; they can choose to negotiate your debt or turn their backs and go the legal route. So when trying to apply for a credit debt settlement, here are a few tips you can use to help you get the best deal possible.
Nothing is set in stone, even if it seems that your creditors are not the kind who’d budge an inch. Sometimes, it takes the right words spoken to the right person that can make things possible.
Take, for example, your credit card debts; you can negotiate for as much as 50% or even 70%, especially if you offer a significant amount to settle your debt. Think that majority of your outstanding credit card debts are because of fees and penalties, and those can be waived or discounted if you offer to pay for the principal in one go.
Credit card debts are unsecured debts. This means that credit card companies hold nothing as collateral that they can sell as repayment for what you owe them. Because they don’t have any security, they would accept your debt settlement offer. Be aware that they will not immediately take what you are offering. Their goal is to get as much as they can from you, while your goal, on the other hand, is the opposite.
They know that if your credit debt settlement negotiation won’t push through, your next step is filing for bankruptcy. Your filing for bankruptcy is something that your lender doesn’t want. Remember that credit debt settlement and bankruptcy can both hurt your credit score. So, if you can still negotiate better repayment terms, explore it first before going down the debt settlement route.
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