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United Settlement » Debt Settlement » Can You Negotiate Your Own Debt?
admin January 7, 2018

Can You Negotiate Your Own Debt?

The process of debt settlement can be worthwhile for the individual burdened by high levels of unsecured debt, such as credit cards. Debt settlement takes place when a debtor successfully negotiates a payoff amount for less than the total balance owed on a debt. This lower amount is agreed to by the creditor or collection agency and is fully documented in writing. Ideally, this lower negotiated amount is paid off in one lump sum, but it can also be paid off over time.

Creditors are more likely to settle once a debtor has already demonstrated an inability to pay, so if you’ve already fallen behind on payments by four or five months, it could represent an ideal opportunity to begin negotiating with your creditors for the best debt settlement. Even though it may seem surprising that banks would settle for less than what is owed, the statistical certainty that not all borrowers will actually pay back is built into a bank’s carefully formulated lending model.

Know Your Debt Settlement Timeframe and Budget

Debt settlement can be a lengthy process, but ideally, it is something that you should endeavor to complete as quickly as possible to minimize damage to your credit score. The key to effective debt settlement is possessing the financial ability to settle. Therefore, if you have the means, you should begin saving for an eventual lump sum payment or structured payment schedule that can be completed within two years from initiation.

You can consider a longer repayment schedule if truly required, though it may also be worth looking into a debt management plan (or possibly even bankruptcy) as your preferred debt relief strategy. If you’re still leaning toward debt settlement, the question then becomes whether to pursue the debt settlement process on your own, or to enlist the help of an experienced debt settlement company.

Can You Negotiate Your Own Debt

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Debt Settlement is Complex

If you’re going to pursue debt settlement, it is important to know what’s involved. For starters, delinquent accounts typically generate bothersome phone calls from creditors and collection agencies that are easier to put a stop to once you’ve agreed to work with a settlement company. It’s simply not as easy to do this when pursuing debt settlement on one’s own. In either case, it’s important to recognize that delinquent accounts are accruing interest expense (including penalty APR, in some instances) along with late fees, so you want to expedite your settlement process to mitigate these mounting expenses. A good debt settlement firm will structure an effective timeline for you. There are several additional important factors to consider.

Its important to know debt settlement will have a negative impact on your credit score. In fact most clients who enroll in debt settlement are already behind on payments which has most likely already had a negative impact their credit score. Debt settlement is made for people facing a financial hardship, once the program is complete and the debt is settled you can begin to rebuild your credit score.

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Things That Must Be Done for Effective Debt Settlement

Either you or a debt settlement company must assess your financial situation and determine how much you can save each month toward your eventual settlement. A good debt settlement company will approximate how much you will ultimately need following a specific review of your creditors and a determination as to which of them may be potentially legally aggressive. You also must generate a hierarchy of creditors – who to settle with first, and at what percentage – followed by the next creditor and percentage, and so forth, through your entire sequence of creditors.

You also must manage all communications with your creditors. Accordingly, you must formulate a strategy of how to best submit debt settlement offers that paint your situation in the most advantageous possible light and that provides creditors with proper incentive to settle with you. Remember, creditors are not legally responsible for accepting any settlement offers. To the contrary, creditors often have legal ground to sue for non-payment, a fact that only enhances the need to expedite the debt settlement process judiciously.

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The Choice is Yours

As you can see, debt settlement is not a simple, straightforward, cut and dried process. Rather, it can be quite nuanced, as communications with creditors must be carefully crafted, with proper prioritization given to those creditors and collection agencies that have the potential to cause the most problems for you – both legally and financially. All of this must be accomplished while trying to save as much money and time as possible, along with mitigating the ongoing damage to your credit score and profile.

Throughout debt settlement negotiation, it is critical to know what information to disclose, the manner of structuring offers, and the timing of such offers. This ongoing process of communication and negotiation is often best handled by a reputable debt settlement firm staffed with experienced professionals who are comfortable navigating these treacherous waters. If you’re burdened by high levels of unsecured debt, contact us here at United Debt Settlement. Our experienced debt counselors will assist you in the process toward successful debt settlement and financial wellness.

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March 14

That when it seems like nobody can help United will.

This was a great experience for me. I am just starting but Madelene Gallon made me feel like we were friends for years. She tried to make me feel that she would help me and make sure I got the best deal from United. I hope this...

Annette Huggins
March 01

Kind and caring

Had been searching for a while for a company I could trust to get me out of crippling debt. Really didn’t think it was possible. Spoke to Ben at United Debt and he assured me that not only was it possible, but it would be fairly...

Kiirstin
March 01

Kind and caring

Had been searching for a while for a company I could trust to get me out of crippling debt. Really didn’t think it was possible. Spoke to Ben at United Debt and he assured me that not only was it possible, but it would be fairly...

Kiirstin
February 28

Quick, easy assistance!

I've been working with Ben at United Debt to help me organize and get out of debt for once - I've been dealing with debt for ages and Ben showed me some simple ways to begin dealing with things to keep me from bankruptcy or worse....

Dylan
February 14

I need help

I really appreciate

Takota Carrie
December 21

Great!

Renika went above and beyond today to help me. She is wonderful to work with! Thank you again Renika for all of your help today! Happy Holidays to you!

JONICA Amber PIRON
December 20

Paying back

They where great listeners

Jayvon
December 14

Everything

Thanks

Shawn abetha
November 23

Do your home eork

Paid several thousand dollars and nothing done. Ended up settling 90%by myself. This is a preatory company. So do your homework. This will never post.

Robert Phillips
November 18

Customer service is truly helpful

Renika was so helpful. My account was paid off but I kept receiving notifications. She cleared up the situation.

Dm
November 16

Great Customer Service

Renika did a wonderful job handling my questions and transactions. She is very patient on the phone and took care of my needs accordingly.

Jose Rosa
November 03

Very helpful

Renika did a great job in answering all of my questions in a timely manner. She was polite and friendly. Keep her on the payroll.

Russ
October 31

What's Important to me is United Settlement Costumer service !

United Settlement Costumer service is Amazing Everyone is Professional . I am so happy choosing them with my card Debt. thank you all for helping me out .

Anthony Desoto
August 23

That this company has integrity!

A responsive company that keeps it clients up to date and fully informed. I like the fact that I can send them a text and be guaranteed an answer within 24 hrs.

Ri cky
June 04

Professional and focused on facts and truth not hype. Excellent. We want to know facts.

Great work very professional and great updates. Communication is excellent.

Jerry Bolandis
October 25

trust them

Excellent. Also each time i call there they treat me with respect even though they are probably thinking jerk . You sure have made mess of your life. but they have been taught to smile smile smile. this agency is just awesome....

janice head
August 01

Thanks for all your help and negotiations.

Thanks for the update! I have faith in you guys and will continue my payments. Thanks for all your help and negotiations.

Scott W O'Neill
July 30

That A Settlement Was Entered.

I Absolutely Love You All At United Settlements. You All Have Saved My Credit Solutions. I Would Refer Everyone To You Services.

Cassandra Robinson
July 16

The results of the settlement attempts.

So far, I have found United Settlement more than satisfactory. Very conscientious and very efficient in providing a service in debt settlement. Thank you and all the members of your team who are assisting in bringing me new life. ...

Mildred Yvonne Sherron
July 16

Tough Financial Hard Times During Covid-19

I signed up with United Debt Settlement because of large credit card debts, which had taken a financial toll on my credit. UDS has an outstanding reputation assisting clients like me achieve financial recovery and success. During...

Diana Cardona
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