Debt Settlement Strategies to help improve your credit score
The keys to a successful settlement negotiation are to be clear about the terms and
conditions of the settlement.
You want the account to be either deleted completely or reported favorably on your credit
report.
Most importantly, you must have the creditor agree to the terms of the settlement in writing.
When it comes to debt settlement, there are several ways to approach the creditor.
conditions of the settlement.
You want the account to be either deleted completely or reported favorably on your credit
report.
Most importantly, you must have the creditor agree to the terms of the settlement in writing.
When it comes to debt settlement, there are several ways to approach the creditor.
The method that you choose will
depend on a few factors such as;
type of debt, age of debt, amount of
debt, and the name of the creditor.
Most often, negotiating a settlement
for less than the actual balance will
require that you can afford to pay
the agreed upon settlement amount
in full.
However, you can still negotiate a
settlement by using a payment
schedule strategy that is limited to
approximately a three to six month
pay off.
depend on a few factors such as;
type of debt, age of debt, amount of
debt, and the name of the creditor.
Most often, negotiating a settlement
for less than the actual balance will
require that you can afford to pay
the agreed upon settlement amount
in full.
However, you can still negotiate a
settlement by using a payment
schedule strategy that is limited to
approximately a three to six month
pay off.
Do not agree to settle for an amount that is out of your reach.
Prior to making the call, determine a firm dollar amount that you can definitely pay.
You may begin the settlement negotiating process by offering as little as 25 percent of the
total balance due.
Attempt to get the creditor to agree to waive all late fees and charges in addition to any
accrued interest.
Do NOT agree to pay, under any circumstances, any settlement amount via a check over the
phone or by credit card. Further, do not send the creditor or collection agency a personal
check.
Rather, agree to send a cashiers check.
If the representative that you are speaking with is not being cooperative, don’t argue, stay
in control. Ask to speak to a supervisor. If the representative refuses to transfer your call,
terminate the call and try again another day.
If after a few attempts, you are unsuccessful in getting through to a supervisor, consider
submitting your settlement proposal in writing and send it to the creditor Certified Mail –
Return Receipt Requested.
The settlement negotiating process can take one phone call or it can take several phone
calls with a few letters and can span a few weeks or even months.
Do not allow yourself to be pressured into submitting to terms that you will not be able to
meet. At the same time, do not be so stubborn that you let a reasonable settlement offer
slip away.
Keep mindful of the fact that if you are negotiating a settlement, then you already agree
that the debt is valid and that the money is owed the creditor.
Appeal to their sense of compassion and express the dire situation that you are
experiencing.
Further, explain that you may not be able to raise the kind of money that you are offering for
a while. Make it clear to the creditor that if they do not accept your settlement offer, you will
be calling the next creditor on your list and offer them the money.
Keep in mind that the creditor is interested in resolving your outstanding debt. The more
debt that is cleared off their books the better.
Prior to making the call, determine a firm dollar amount that you can definitely pay.
You may begin the settlement negotiating process by offering as little as 25 percent of the
total balance due.
Attempt to get the creditor to agree to waive all late fees and charges in addition to any
accrued interest.
Do NOT agree to pay, under any circumstances, any settlement amount via a check over the
phone or by credit card. Further, do not send the creditor or collection agency a personal
check.
Rather, agree to send a cashiers check.
If the representative that you are speaking with is not being cooperative, don’t argue, stay
in control. Ask to speak to a supervisor. If the representative refuses to transfer your call,
terminate the call and try again another day.
If after a few attempts, you are unsuccessful in getting through to a supervisor, consider
submitting your settlement proposal in writing and send it to the creditor Certified Mail –
Return Receipt Requested.
The settlement negotiating process can take one phone call or it can take several phone
calls with a few letters and can span a few weeks or even months.
Do not allow yourself to be pressured into submitting to terms that you will not be able to
meet. At the same time, do not be so stubborn that you let a reasonable settlement offer
slip away.
Keep mindful of the fact that if you are negotiating a settlement, then you already agree
that the debt is valid and that the money is owed the creditor.
Appeal to their sense of compassion and express the dire situation that you are
experiencing.
Further, explain that you may not be able to raise the kind of money that you are offering for
a while. Make it clear to the creditor that if they do not accept your settlement offer, you will
be calling the next creditor on your list and offer them the money.
Keep in mind that the creditor is interested in resolving your outstanding debt. The more
debt that is cleared off their books the better.
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