Credit Negotiations: Settle Debt For Less

: Chris Lee Law Firm

  Filed under: Credit Negotiations

Debt settlement is a powerful tool that few consumers take advantage of in today’s world. Creditors are attributed with having all the power in the lender/borrower relationship, but the fact is that the borrower has power too. Harnessing good strategies for credit negotiations will help you settle your unsecured debts for less than you may have believed.

Tips For Success

Many consumers are put off by the intimidating nature of credit negotiations. Whether the lender is a big credit card company or a bank, chances are they are a venerable institution and a borrower may feel like they cannot possibly go up against this Goliath and come away with a win. But consider things from the lender’s perspective for a moment, and suddenly the picture begins to change.

A lender has gone out on a limb in giving the borrower a chunk of money. They do this for a complex variety of reasons, but suffice it to say that they believe they will be able to collect that money back, plus interest, in most cases. If, however, they begin to believe that they will not be able to collect this money, say, if the borrower declares bankruptcy and all their debts are discharged, including the lender’s… then the lender may think about debt settlement.

In other words, if you are a borrower faced with mounting debt, whether or not you are considering filing for bankruptcy, making a lender believe you are considering bankruptcy is a great way to begin serious credit negotiations. Suddenly a lender may start to think that getting half their money back might be far preferable to having the entire amount discharged in bankruptcy and leaving them with nothing. Thinking about things form both angles may help you gain the courage to enter credit negotiations and get the debt settlement plan you want.

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