What is Debt or Credit Card Negotiation
Can it reach a solution that benefits both parties?
What is ‘debt negotiation’?
Debt negotiation is the process of negotiating your debts with creditors (including credit card companies) in order to come to a mutually acceptable settlement agreement. Most creditors are willing to negotiate debts if you’ve fallen on financial hard times and you’re having difficulties paying. The borrower sees negotiation as an acknowledgment that at least you are looking to repay some of the outstanding debt, based on what you can afford. The creditor sees debt negotiation as a means to end up with something, whereas going down the route of seeking court action doesn’t always guarantee them getting repayment, especially if you’re forced into bankruptcy.
Creditors have a lot of experience in debt negotiation, and it is worth noting if you are a borrower that you will need to be assertive about what you can pay during this process, though at the same time realistic as to what a creditor is likely to accept. Debt negotiation services are available for those who do not feel confident in going to creditors and negotiating their debt themselves.
Using a debt negotiator is also useful for taking advantage of their experience and knowledge, while it may also help you to be free of the stress and the emotion of the situation. MyDebtShield negotiators will know what some creditors are likely to accept and how they work, meaning settlements can often be made quicker while also getting a better deal than you might by ‘going it alone.’
How does the process work?
Creditors willing to negotiate debt usually want a lump sum to be paid. Receiving a lump sum now rather than having to wait years to receive what they are owed is a big motivating factor. During a debt negotiation, you will usually have to offer a lump sum now to significantly lower the amount owed. If you’re not able to pay a lump sum, MyDebtShield will work with you to find options you can afford
How does ‘debt negotiation’ benefit both sides?
For the creditor, every debt has a cost. If they are having difficulties collecting, or are not receiving any payments, this is costing them money. If they are a collection agency, they bought the debt a fraction of the actual amount owed. Either way, the creditor has a number in mind of what the debt is now worth to them – and it’s much lower than the actual amount owed. If the negotiation process is effective, both sides can benefit. You can clear up your debt obligations by making a lump sum payment for far less than you owe, and the creditor receives something more in line with their lower valuation of the debt. In many cases the creditor will consider any amount a plus, which is why they’re willing to negotiate, although they’ll still look for the best possible terms and the highest possible repayment. By working with experienced negotiators, you can zero in on the lowest realistic offer much faster, resulting in greater savings of time and money.
Need help fighting back?
MyDebtShield is here to help. Our agents can help you protect your rights and stop bill collectors in their tracks.
- Validate and dismiss fraudulent collection efforts
- Put a stop to collection calls and written demands
- Negotiate the most favorable terms for any valid debt
- Even sue collectors who are using unethical tactics
Call us today at 844-328-7453 or click the button below to schedule a call with one of our agents. Take control of your financial future!
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