Debt consolidation article: Successfully Negotiate your Debts

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You don't have to have a professional negotiate your debts for you. Simply gather all of the documents that you have relating to the debt you are negotiating.

You have to know where you stand financially before you can negotiate any of your debts. Sit down and create both a budget and a debt repayment plan. You need to know the following things before you talk to the debt collector or credit card company:

How much you can pay to settle the debt.
Whether you are able to pay it all at once or will you need to make payments.
At what point you will not negotiate with the debt collector any further.
Know your rights and the statute of limitations on debt for your state.
Remember, that you have something they want -- your money. You are in power here. In most cases, they don't want to sue you or take the risk that you will file for bankruptcy or demand a cease and desist from them. In most cases, negotiations will work. Stay in control and in power. Don't lose your cool. Stay calm and stand firm in your decisions.

You have rights that make it impossible for the debt to be collected without going through court. That gives you the upper hand. Don't be afraid to use it.

When talking with the debt collector:

Don't offer the full amount you are willing to pay right off the bat. That gives you no room to negotiate, if necessary.
Don't take no for an answer. You can always ask to speak with a supervisor.
Don't lose your temper. Call back tomorrow and ask to talk with a manager or supervisor right from the start.
Be firm and don't offer too much information. What you say can be used against you.
Time is on your side. Don't be too eager to settle the debt. You are in control. Check and see how close you are to the limitations period.
Keep good notes and follow up your communications with a summary in writing of all conversations. Send them via Certified Mail, Return Receipt Requested so that you have a paper trail. This could be necessary if the case goes to court.
Make sure that you cover how the payment is to be made, when it will be made, where it should be sent. Make sure that both parties agree that the payment does not constitute admission of liability for the debt and that the agreed settlement is in full satisfaction of the debt.

You can ask that the debt be reported to your credit report as deleted. This will ensure that the debt isn't re-aged to the debt payment date. This would result on the debt being on your report for another seven years. If it won't be reported as deleted, ask that it be marked as "paid," not "paid-charge-off" or "paid collection."

About the author of Successfully Negotiate your Debts

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