Negotiating a Debt with your Creditors
Your creditor might allow you to pay less than the total amount you owe them. Even after the debt settles down, your credit file will show an entry of the negotiated debt which leave a responsible impression of you. You credit file will display the debt as paid.
How we initiate your debt negotiation?
Firstly we analyse your affordability to pay off the debt. We do not recommend offer more amount than what you can pay.
Then we request you debt collector to take off the negative listings from your credit report related to the paid debt.
(The debt collector cannot remove any negative information about your debt that was added to your credit files when the debt was still with the creditor.) Then check your credit histories to make sure that the negative information has been removed.
Put things in writing
Get the details of the agreement in writing before you give the collector any money. It’s also a good idea to hire a consumer law attorney to review the agreement. At a minimum, your agreement should clearly state:
- How much you have agreed to pay.
- Whether you will pay the settlement amount in a lump sum or over time.
- When the lump sum or payments are due.
- How you will make the payment(s), such as via an electronic bank transfer or with a cashier’s check. Avoid giving a debt collector a personal check.
- That the debt collector agrees to report to the credit bureaus that your debt has been “paid in full” as soon as the settlement amount is received.
- Any concessions that the debt collector has agreed to make.
- Conditions that breach the agreement and the consequences of the breach.
- Do not sign the agreement until it reflects everything you agreed to and unless you understand everything in it. After you sign the agreement, make a copy for yourself and file it in a safe place.
If the debt collector won’t put your agreement in writing, prepare an agreement yourself; sign it; and send it to the debt collector via certified mail, return receipt requested.
