Terms to Negotiate During a Debt Settlement

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Before you decide to take the plunge into a debt settlement plan, it is imperative that you know exactly what to expect throughout the process. Debt negotiation has a lot of variables that can be changed to your benefit; you just have to be prepared along the way. Liberty Debt Relief has narrowed down the top debt terms that you can use to your advantage so you can make your debt settlement work for you through every step.

Discover how debt settlement can bring you the ultimate financial contentment.

debt terms to negotiate

Amount Owed

The essential reason for enrolling in a debt settlement program is to lower your outstanding balance as quickly as possible. One of the first things you will be able to do during negotiations is determine how much of your owed amount you can pay off. When thinking about how to negotiate a settlement with creditors, keep in mind that you will not be able to completely erase the amount that you owe. You can, however, significantly lower what you owe.

Always set a range of what you can afford to pay during negotiations. In an ideal world, you would be able to pay only half of what you owe, and that should be your initial offer. But you can also bargain with them to pay 25 to 30 percent of what you owe, which is great. Just make sure that, whatever you decide on, you can actually afford.

Interest Rate and Fees

Along with the actual amount you owe, the interest rate is a debt term that is essential to keeping your payments as low as possible. When negotiating debt settlement with creditors, find out how low they are willing to go on interest charges throughout the payoff process. You can also likely eliminate all or most one-time fees, such as late charges or settlement fees that the creditor typically mandates with the agreement that you will adhere to the payment plan fully.

If you are negotiating credit card debt, this process may be a little easier because credit card companies are notorious for wanting their money back as quickly as possible. Most times. they will do just about anything to get at least most of the amount owed back to them. Since credit card fees are usually pretty minimal compared to the outstanding balance, getting those fees eliminated can be a piece of cake.

The Length

Believe it or not, you have say in how long the debt settlement program will be. The major key in how to negotiate a settlement with creditors is to know what you can afford to do before you even enter the negotiations. Getting U.S. debt relief can sometimes take three to five years, and if that works for you and your budget, then great! If you would like to lower the amount of time though, that’s fine too. All you have to do is make sure you can afford higher payments every month and that you have a steady income to support a shorter plan.

Monthly Payments

Going off of the duration of your payments, you can also help determine just how much you want to pay in your debt terms and conditions. If you are dealing with unsecured debt, this may be a much easier process because you don’t have to worry about losing your car, home, or other assets if you cannot make a payment at any time.

The key to successfully negotiating how much your monthly payments will be is to know exactly how much you can afford and how long you want your settlement program to be. For example, if you owe $5,000 and want to have the debt paid off in 3 years, you will have to pay a little over $138 every month. You can increase that amount to pay it off sooner, or even extend it so it’s more affordable.

Get It In Writing

One of the first things that any debt expert will tell you about how to negotiate a settlement with creditors is to always get the final print in writing. Many companies have a fault of verbally agreeing to certain terms and then when you think you have paid off your debt, sending the rest of the original amount owed to a debt collector, which comes with even more, non-negotiable fees. You are especially susceptible to this if you are trying to negotiate debt on your own, rather than with the help of a certified debt relief company.

To prevent this, either work with an accredited debt relief counselor or negotiate terms with a company and have every stage of the process written down. Go to their office to negotiate and demand written proof of your talks and have information mailed, emailed, signed and delivered. Don’t allow yourself to be taken advantage of and make sure they know you know what you’re doing.

Get Professional Assistance You Can Trust

Successful debt negotiations are difficult, and if you are feeling a bit overwhelmed and want to ensure that you truly get the best debt terms possible, consider working with an accredited debt relief company. By working with someone who has a proven track record of years of experience dealing with debt settlement negotiations, your chances of debt relief drastically improve and you can rest easy knowing you will be out of debt sooner rather than later.

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