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5 Things You Should Know In Debt Negotiation
If you have been knee deep in debt for quite a long time, you should know how stressful it is when you can't make your monthly payments on the consumer debts. Negotiating with your creditors to reduce your total outstanding can be considered one of the best solutions you should apply to eliminate your financial burden. However, before you start doing this, there are 5 important things you should know.
No. 1 - Your Credit Report
Before you start negotiating with your creditors or debt collection agencies, you need to make sure that the details stated on your credit report are accurate. You must check your credit file carefully to avoid false statements.
No. 2 - The Fair Debt Collection Practices Act
As a debtor, you have your rights. If your creditors are threatening you or forcing you to pay off your debts through illegal ways, you have the right not to entertain them. By knowing the particular act clearly, you will be able to handle the negotiation in a more proper manner.
No. 3 - The timing
You can't start bargaining with your lenders anytime as you prefer. You will be rejected directly ...
... by them if you choose the wrong time. For instance, you are not allowed to settle your debt when your past due is only one month. No creditor will believe that you have lost your financial ability to clear off your debt if you just fail to make your monthly payment after one month time. The best time to bargain is actually when your past due is more than 3 months.
No. 4 - Your bargaining power
Do you really know what can be negotiated? Besides requesting your creditors to reduce your outstanding balances and interest rates, you can also request them to remove all the negative items from your credit report. Don't feel ashamed to ask for it. Make sure you protect your credit wisely.
No. 5 - Important Proof
After your creditors have accepted your settlement offer, what's next? It is not the end of the case. You need to obtain written agreement from your creditors to serve as important proof. You should only make your payment after you have received the agreement with new conditions.
Last but not the least; having good interpersonal skills is indeed important when you are dealing with your creditors. Make sure you get yourself emotionally and mentally prepared before dealing with your creditors.
For more information about debt settlement solutions and debt settlement companies, visit DebtSettlementEssentials.com.
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