Debt negotiation entails negotiating with creditors to reduce your principal debt, cut finance charges and late penalties, or change payment terms such as interest rates, monthly payments, or loan length. This article will provide you with seven measures that you can take if ever you decide to בקשה להסדר נושים.
- Examine your debts. Before doing anything else, you must take a look at your debts first. How much money do you owe? Who are your lenders? Is it possible to pay off the obligations without negotiating a settlement? Or would it be impossible to clear the debts without receiving a reduction in the amount owed?
- Do your research. Investigate how the creditors (or debt collectors, if the creditors are no longer handling the debt) conduct debt settlement online. If you can’t find the information online, contact your creditors and inquire about taking debt settlement. It is necessary to remember that not all creditors will agree to a debt settlement.
- Save some money. Informing your creditors that you have set aside some money to cover the debt may offer you an advantage when bargaining with them. Most people prefer a lump-sum payment. However, some may be fine with splitting the cash amount into monthly payments.
- Prepare to bargain. After you’ve done your homework and saved some money, it’s time to decide on a settlement offer. In most cases, creditors might agree to accept 40% to 50% of the debt you owe, but it might be as much as 80%, depending on whether you’re working with a debt collector or the original creditor. In either situation, your initial lump-sum offer should be substantially below the 40% to 50% range to allow you some wiggle space.
- Make contact with the creditor. Call the creditor with your offer in hand. Request a manager or the “financial assistance” department of the creditor. You may need to call numerous times before speaking with someone who understands your problem.
- Make a note of it. Once you and the creditor have reached an agreement on a debt settlement, make sure to have all of the details in writing. This will protect you if difficulties arise later.
- Please pay the money. Now that you have the agreement in writing, you must follow through on it. This includes paying on time (or on time if you’ve worked out a longer-term plan) and spending every money you’ve promised to deliver.
How to Bargain With Creditors
When negotiating with a creditor, strive to settle your debt for 50% or less, a reasonable goal based on creditors’ debt settlement histories. If you owe $3,000, try to fix for up to $1,500. However, you will begin your negotiations by promising to pay much less than 50% to give you and the creditor a wiggle room.
Make sure to notify the creditor that you’ve set aside money to make payments, whether it’s a flat sum or a payment plan. This could offer you an advantage in negotiations. If you decide to enter into a payment plan, inquire whether the creditor may reduce the interest rate on loan to relieve your financial load. Maintain a documented record of all communications with a creditor during your negotiations. Last but not the least, maintain your composure and be truthful. Being emotional and dishonest will not help your cause.
Remember that most creditors will not settle a debt unless you are severely behind on payments. Furthermore, if you negotiate with the original creditor, they may demand that you pay up to 80% of your late amount.
How to Negotiate With Debt Collectors
In some situations, your debt may have been turned over to a debt collector by a creditor. Debt collectors make money by collecting past-due bills from creditors such as credit card companies.
Be patient when dealing with debt collectors. It may take numerous efforts to get an agreement that you are happy with. Refuse to accept a deal that isn’t in your best interests. Inquire whether the debt collector is willing to settle the debt over time rather than all at once with a single lump-sum payment.