Debt Settlement’s Hidden Secret Revealed

Don’t be afraid to begin the settlement process with a low offer – even as low at 50% of the amount you owe.

Do a little searching online, and you’ll quickly find reports of people receiving settlements has low as half of what they owe to a creditor. Sure, somewhere in the 60%-80% range is more likely, but you’ll never know how low your creditors will go unless you ask.

Regardless of your debt settlement, be certain to document your conversation in case you need to confirm the agreement later.

When is the Best Time for a Debt Settlement?

If you’re behind on your balances, creditors are anxious to get any type of payment from you. That’s why a debt settlement can work to your advantage.

However, you’ll want to wait until you’re at least 60 days behind on your payments. If you’re current with your payments, there’s little chance of getting a debt settlement. Also, if a creditor sees you’re paying other creditors on time, but forgetting about them, you’ll have trouble coming to an agreement that lowers your balance.

How to Stop a Collection Agency from Getting Involved

Dealing with a collection agency will require much more effort on your part than settling with your creditors. If at all possible, don’t allow your creditors to turn over your account.

To ensure this never happens, make sure you don’t allow your payments to go beyond 90 days. Some creditors may allow you 120 days, but there’s no need to test those waters.

If you’re wondering if your account has been turned over to a collection agency, simply call your credit card company and ask.

To speak with a professional credit counselor and discuss your debt settlement as part of a free, no-risk consultation, contact us today. You’ll also find additional debt settlement advice here.