During the economic crisis, debt settlement is a common term used among people drowning in deep debt. In many people’s minds, debt negotiation is a very complicated process and must be done by debt settlement companies. In fact, this process can be carried out by individuals without hiring any company. Although you are not good at accounting or finance, you may still be able to pay off debt on your own by following the suggested steps:
o First things first, in order to start your debt settlement process, it is important that you make sure you have sufficient funds allocated in your savings account before making any settlement requests.
o Once you have raised enough funds in your account, you can continue debt negotiation by writing a negotiation letter to your creditors to request a lower repayment amount. You need to know the exact number of how much you owe, and you also need to know the interest rates. Make a careful calculation about the amount of the refund. Creditors will be convinced to accept your offer if the proposed payment amount is around 60%-70% of the outstanding bills.
o If you think sending a letter is not effective enough, you can call your creditors directly to negotiate over the phone. You may need to make a few phone calls before your creditors finally reach an agreement on the amount you propose. Once your creditors have agreed verbally over the phone, ask them to issue you a confirmation letter as proof.
o To make the process faster, if you have time, it is best to negotiate your debt face to face with your creditors. Specify your current financial difficulties to your creditors and propose a repayment amount that you can afford. Creditors are not cold-blooded. In fact, debt negotiation can be successfully completed after a few negotiation sessions.
The recession is the time when creditors are most willing to accept debt settlement. Managing debt negotiation on your own is possible and you don’t need a financial advisor to help you. A good negotiation skill is more necessary!