Getting into debts is easy, but getting out of them can be really difficult. You may have to take up a part-time job or increase your working hours. You will have to make sacrifices, cut out any unnecessary spending and follow a strict monthly budget. However, it might take a while before you pay off your bills and save enough money to do away with your debts.
There is one way you can get your creditors to lower your debt balance or reduce your interest rate – Debt Negotiation. It is not really easy, but if you follow a few tactics you can definitely make it work. If not, you can always hire the services of a debt settlement agency that might come to your assistance through debt settlement leads.
Here are a few tips that can help you get debt-free as early as possible:
Get on top of things
A good starting point to get debt-free would be to compile all your statements in one place. This includes your credit card statements, your store cards, and any other debts that you may owe. Make sure you have all of them in place. Find out the ones that require you to pay higher interest rates and prioritize them for settlement. This way you will know which creditors you need to contact first. Mark those who you think would be willing to negotiate with you, to settle your debts.
Ask for debt settlement
Many borrowers may not realize this. But you can actually ask your credit card company to settle your debts. That way you can settle your debts with your creditors directly without the collectors calling your house every now and then. Did you know that you can actually get your creditor to settle your debt for 50% or less, by offering a lump sum payment? If you cannot get this entire amount from your credit card company you could have a garage sale or sell a few items on eBay.
A good alternative would be to contact a debt settlement company who can settle your debts for you. Most such companies get in touch with their prospects directly via debt settlement leads. These companies will have professionals who are experienced in negotiating with creditors on behalf of their clients. They understand the kind of tactics they need to adapt to make the creditors agree to settle the debts for less. Even if you do have to pay them a fee, you will still stand to gain by hiring a debt settlement agency to settle your debt for you.
Consider the Statute of Limitations
Every state has a statute of limitations that tell the creditors when they are allowed to collect their debts. While these vary from state to state they do set a time frame within which creditors can initiate legal actions to collect their debts. Once the statute of limitations starts drawing nearer, you know that your creditor would be more open to settling the debt with you. That would be the right time to start the process of debt settlement by hiring a debt settlement agency that might come to you through debt settlement leads.
Keep Your Cool
Keeping your cool is very important when it comes to debt negotiation. Sounding desperate or confrontational hardly helps if you want to settle your debts for less at the earliest. Remember you will have to work with these people until your debts are settled completely. Hence it is crucial for you to be polite and courteous. You will have to establish that you are not in a position to pay back your debt in full. Make sure you have all the information and documentation organized and ready.
If you have hired a debt settlement agency that has contacted you via debt settlement leads, you will be in a better position to settle your debts. However, there is one thing you need to keep in mind about debt settlement. In case your creditor chooses to report the facts about debt settlement to the credit reporting agencies you can end up with a lower credit score. As far as possible, work with your creditor so that he refrains from reporting. Get a letter from him which says that your debt has been settled for good.