Category Archives: Negotiating Debt Settlement

How to Negotiate a Debt Settlement Like the Pros

many credit cardsFinancial difficulties are experienced by many people, but they don’t have ruin your financial livelihood. When you find yourself in debt—be it with a credit card company or another type of lender—there are options. Learning how to negotiate a debt settlement like the pros is possible. There are plenty of great tips to keep in mind as you continue on in the process. Keeping the following tips in mind as you head towards financial freedom might actually be a lot than you thought.

Have a Good Plan in Place

It’s important to evaluate your situation and figure out exactly how you’re going to go about getting yourself out of debt. If you’re owing money to more than one lender or credit card company, it’s going to be important to make sure you pay one off at a time. Learning how to negotiate a debt settlement is within your reach, but if you’re not a professional, you may want to pay one debt off at a time as you work on settling your financial commitments. Also, trying to pay off debts to multiple lenders all at once will most likely be too much of a financial strain. Never try to bite off more than you can chew.

different credit cardsMake Sure to Explain Yourself Well

Whether you’re working on debt settlement in Phoenix or somewhere else in the country, it’s going to be important that you frame your story the right way when you’re working with credit card companies to settle a debt. Explain the circumstances behind your situation, and explain why you’re able to pay your debt off right now. The most strategic position to adopt is that you have a single sum of money with which you are going to be able to pay off some of your debt. If you suggest that you’ve come into a one-time surplus of cash and that you might not be able to hold onto it for long because you have other debts, a credit card company will be quick to work with you. They’re going to be more interested in getting something from you—even if it’s less than the total amount you owe—than they are in getting nothing at all.

close up of credit cardsMake Yourself a Budget and Stick to it

Vital to the debt settlement process is how you budget while you’re squaring things away with a credit card company. You can spend all the time in the world learning how to negotiate a debt settlement like the professionals, but if you don’t budget well while you’re going through the process, you may find yourself accruing additional debt.

When it comes to learning how to negotiate a debt settlement, the requisite knowledge isn’t impossible to attain. You’re going to want to make sure you have plenty of organization and dedication to power through it as it will require patience and hard work. In the end, financial freedom is well worth the cost of admission.

 

Image credit: frankieleon

3 Steps to Debt Settlement Negotiation

Debt Settlement NegotiationDealing with credit-card debt isn’t exactly what you might call fun. It’s just one type of debt that a ton of Americans find themselves living with, and it can really wreak havoc on an individual’s credit score. Not only does this cause credit card debt to sometimes spiral out of control, but it can pave a really difficult road when it comes to getting loans and using your credit score for other purchases and credit-related activities later on in life.

Thankfully, a messy credit score is something that can be dealt with relatively directly. Sure, you can go for it on your own, but hiring a company to handle your debt settlement negotiation might be a better idea. Not only do they tend to have a lot more experience, but they also have relationships with credit card companies and other lenders. Here are three easy steps that can bring you closer to a debt settlement solution:

  1. Analyze the Situation

piggy-bank-661969_1280The first step in your debt settlement negotiation process is going to involve figuring out exactly what it is you’re dealing with. Most of the time, credit card debt can be a complicated beast. How many cards do you have in your name? Can you determine the exact amount of money that you owe, and to how many different lenders or credit card companies you’re in debt? One of the very first things that you will want to do while you figure out your debt settlement plan is nail down the details of your debt in the first place.

Many individuals living with debt are doing so because their financial situation isn’t exactly kept in order. Sometimes simply getting yourself organized can be the first step to a serious change. Use a spreadsheet or some other handy way of figuring out exactly what you owe, and to whom. Use this information to craft a budget for yourself that will help you proactively pay off your debt, rather than perpetuating the cycle that created your debt in the first place.

  1. Go Ahead and Call for Help

If you’re going to use professional help for your debt settlement negotiation, you’re going to want to start making a few phone calls when you know exactly what you’re dealing with. Take time to properly assess the situation: patience is key. When you know exactly what you have on your plate, however, it’s time to act quickly. Don’t waste time making phone calls and talking to organizations that can help you with the debt settlement negotiation process. You want to give yourself a few options.

  1. Budget Fiercely

As you pay off your credit card debts, you’re going to want to make sure that you adjust your spending habits elsewhere to account for the money that you’re now using to pay off the credit card companies. This might take a bit of budgeting. The debt settlement international-debit-card-388996_1280negotiation process always goes a lot more smoothly when individuals are able to curtail extemporaneous spending. Think about what you need and what you don’t need. You obviously need to make weekly trips to the grocery store, but maybe you could stand to ditch the Netflix account for a few weeks or make one less trip to your favorite restaurant each month.

Debt settlement negotiation can seem impossible, but it doesn’t have to. By creating a clear road map, and following through, you can easily put yourself on a path to financial independence.

How to Negotiate Debt Settlement

Signing off multiple credit cardsMany Americans find themselves at some point wondering how to negotiate debt settlement. Financial issues affect even the best of us, and they have a tendency to be issues that need to be resolved immediately. Failing to attend to a monetary problem can lead to huge financial issues for you and your family members down the road, which is why a lot of individuals actually wind up going with a company made of professional debt settlement negotiators when they’re looking for credit card debt settlement in California…or anywhere else in the country, for that matter.

There are a few different ways to go when you’re wondering how to negotiate debt settlement, and many individuals are finding that the best way to go is with an organization like Financial Services of America that dedicates itself to settling debts and negotiating settlement for all types of customers in all types of financial situations.

Work Down the Settlement from the Original Price

Stack of credit cardsOne of the keys to learning how to negotiate debt settlement lies in understanding that your leverage in the situation comes from how you represent yourself and your financial situation. It’s important, when you’re negotiating a debt settlement with a credit card company or any other lender, to make your situation appear as dire as you possibly can. The strategy that you’re employing is one designed to convince the lender that you’re not going to be able to pay back very much of your debt at all. If the lender thinks that you’re not going to be able to pay off any of your debt…well, suddenly recovering 50% of your original debt begins to look better than recovering nothing, and both parties can walk away from the table feeling as though they have had their needs met.

Another good way to accomplish this goal is to indicate that the credit card you’re dealing with is just one of several lenders to whom you owe money. Once again: it’s all about how you represent your financial situation. If you imply that you only have a limited amount of money with which you’re going to try and placate several different lenders to whom you owe money, the lender to which you’re speaking at that moment will likely adopt a “something is better than nothing” mindset, and accept a payment that is drastically lower than the amount you originally owed.

Finger on credit cardSometimes the Pros Are the Way to Go

There’s a lot that goes into learning how to negotiate debt settlement, which is why a lot of individuals wind up trusting an organization like Financial Solutions of America to handle the process for them. Not only are our team members intimately familiar with the ins-and-outs of credit card debt, but they have established a long-standing rapport with many lenders and credit card companies, greatly helping grease the proverbial wheels to make the entire process a lot easier to deal with. When the time come when you’re ready to negotiate your credit card debt, call Financial Solutions of America.

Negotiating Debt Settlement: Common Pitfalls You Should Avoid

walletDebt settlement is all too common: many of us have dealt with financial hardships at one point or another, and it’s easy to become overwhelmed. Plenty of individuals have had to deal with negotiating debt settlement, but despite its commonality, there are still plenty of mistakes that people can make when going through the process. Many of these mistakes simply come from not knowing enough about the process, which is completely understandable. A few simple pointers, however, can help you avoid some of the most common pitfalls that come with debt settlement negotiation.

Know What Type of Debt You’re Dealing With

Credit Card StatementThere are a lot of financial details that go into the process of negotiating debt settlement, and often creditors or debt collectors will rely on the fact that many individuals aren’t aware of all these details to get more money. One of the most important details associated with debt collection is whether or not the debt is secured or unsecured. The distinction is easy to understand: a “secured” debt is one whose security comes from interest in some type of expensive asset. Essentially, if the debt is not repaid, the lender can repossess this asset (typically a boat, piece of land, or car).

On the other hand, an unsecured debt doesn’t come with this same attachment. Typically, large retail chains trade in unsecured debt—they’ll often allow individuals to purchase items on credit, but this merchandise can also be repossessed if the debt is not paid back in time. Whatever the case may be, Financial Solutions of America is one of the best options for debt settlement in Las Vegas, and can help just about anyone settle debts quickly and efficiently.

Devil in the Details

Negotiating debt settlement involves a lot of fine details, and losing track of them can cost a debtor dearly. At Financial Solutions of America, we’ll make sure to help you keep track of the most important details during the debt settlement process so that you can be sure to walk away with as much money in your pocket as possible. Small details like making sure to use the right type of money to settle debts can be very important. For example, it’s strongly recommended that retirement funds are never used to settle debts. Most retirement funds will require that the debtor pays a tax on his withdrawal, while many others will require that the entire amount is repaid, just like a loan.

writeSimilarly it’s important to avoid using equity from secured property to pay back an unsecured debt. This is essentially “borrowing from Peter to pay Paul,” and has a tendency to only worsen and prolong the debt settlement process.

Of the many available options for debt settlement in Las Vegas, Financial Solutions of America is certainly among the most committed to resolving debts in the most expedient and efficient way possible. In most cases, we can reduce debts by up to 60%, and by advising our clients about points just like those above, we are able to not only settle debts but educate our clients at the very same time.