Whether you are looking to settle your debts or you want to get your financial house in order, you need to understand how to make a debt settlement offer that will impress your creditors and save you some dough in the process. The key to a good deal is to take your time and make an educated decision.
Often, a creditor will be happy to settle your debt if you offer them a small percentage of the total amount. In return, you will likely receive a written settlement offer letter that should be accompanied by a copy for your records. You also may need to set a budget for your debts in order to get a handle on the situation.
A debt settlement offer may come in the form of a lump sum payment or a payment plan. When deciding on a settlement plan, make sure you are willing to pay at least 50% of the total balance. Otherwise, you will have to wait for your creditors to sell the debt to someone else. If you are in a hurry, you can call a debt collector and they will likely work out a settlement for you. However, your options are limited and you should consider your options carefully.
A debt settlement is a great way to clear your name and start fresh. However, there are many pitfalls to avoid, especially if you are using a debt settlement company. First, you need to avoid signing up with a company that charges you for services. Instead, look for a reputable debt settlement provider. Make sure they are upfront with you about any fees, and ask for a receipt before you sign on the dotted line.
The best way to go about a debt settlement is to negotiate with the original creditor. Original creditors are less likely to accept a smaller payment than a debt collector, but it is possible. There are a number of tricks you can use to entice them into a deal.
For example, you may be able to entice them to agree to a lower payout by making larger monthly payments. Or you could ask them for a one-time payment in exchange for marking your debt as settled in their records.
Another good way to find out if your debts can be settled is to request a copy of your credit report. This will reveal any outstanding balances, but you may need to wait for your credit report to be updated before you can get a firm offer. Alternatively, you can refer your debts to a collection agency. These companies will often purchase old debts for pennies on the dollar, but they are notorious for threatening and intimidating debtors, so be prepared for the worst.
Lastly, you should also learn more about your rights and options. You may need to file a lawsuit if you feel that your creditor is acting inappropriately or in a manner that is not in your best interest. Depending on your circumstances, you may be able to use the statute of limitations to your advantage.
How to Make a Debt Settlement Offer That Will Impress Your Creditors and Save You Some Dough was first seen on Help with My Debt