How to Negotiate With Creditors

Are you over your head in credit card debt? Are you getting calls constantly from debt collectors? Are you afraid t check your mail because of all the collection letters? There are some ways to work with your creditors to reduce your debt.

Difficulty: Moderately Easy

Instructions

1. The first step is make sure the debt is actually yours. The next step is to make sure the debt is within your states SOL this the number of years your state allows you to sue a debtor. Once you find out you do owe the money and the creditor is legally able to collect it you are ready to negotiate.

2. If the debt is many years old the debt collector most likely bought it for a few cents on the dollar from the original company. This means even 25% or 50% payment would be a great deal for them. This means if you can make an offer to pay thirty or forty percent they might take the deal.

3. You will have the most leverage if you can offer a cash payment. Make sure the debt collector sends the term of your deal in writing. Never pay before you get a settlement in writing! If you find an inflexible creditor you may tell them if you can not settle your debts you may be forced to file bankruptcy. Make sure to consult with an attorney if you have any doubt about a debt settlement or you options.