When you decide it’s time to deal with your financial debt, you have options, some of which can be confusing. Many individuals are trying to resolve their debts, but the process for doing so can be daunting and potentially difficult. However, if everything is done correctly, you can successfully secure your financial freedom and sometimes even wind up paying less of the debt than you owed. Settling a debt for less than owed is a common tactic in the credit card industry. Here, we’ll talk about a few tactics that might help you pay off less than you originally owed.
Come Up with a Convincing Story
One of the most successful strategies for settling a debt for less than owed is convincing the lender that it is their best option. Explain the conditions that affect your ability to pay off this debt. If you tell your lender that you only have a fixed amount of cash with which to pay off multiple debts, they’re going to be quicker to accept a figure that’s lower than the original number. Convincing the lender that some or nothing are the only two options is a great way to go about settling a debt for less than owed.
Work with a Professional Organization
When you’re working on settling your debts, it’s possible to settle a debt for less than owed if you work with a professional organization like Financial Solutions of America. Companies like FSOA work with individuals to help them take care of their debt issues, finally breaking away from their financial burdens while often paying less than the total they owe to lenders. This helps consumers because companies like FSOA tend to have long-standing relationships with these specific lenders. This experience makes the negotiation process a lot easier.
Go with the Biggest Debts First
Another solid strategy that can help you settle your debts for less than the total you owe is by tackling the larger debts first. When you pay off the bigger debts you owe, you’re more likely to find yourself dealing with a lender who is more desperate to see returns on your debt. If you’re having financial problems, it’s often unfeasible for you to take care of your debts in their entirety. Credit card companies will often understand this and work with you, especially when it means they’ll get something instead of nothing.