Debt Negotiation and Benefits
A repayment of debt strategy for negotiating with the creditors is debt settlement. With the debt negotiation there is a possibility that the creditors agree to a partial payment of the total debt with the rest of the debt being cancelled. Opting for a well reputed company for the debt negotiation can be beneficial for many. You need to make sure you can detect scams so that you are not swindled in any way.
Some Benefits of Debt Negotiation:
Debt negotiation is definitely a wise option. This can benefit in a number of ways.
1. Relief from Debts:
Debt negotiation companies ensure you are seriously in trouble before lending a helping hand. That is, the problem you are facing has to be legitimate. These companies help you with the negotiations and ensure you pay only a part payment of the debt, that too, at a low interest rate. You can be free of debt in a short time as compared to the normal time taken for the repayment. You are free of any tensions.
2. Avoiding Bankruptcy:
The only reason people opt for debt negotiation is to avoid the possibility of bankruptcy. This bankruptcy entry is on a credit report for a minimum time span of almost 10 years. You might face problems for loan applications, credit card applications and even for job applications. You are found guilty of fraud if you answer in the negative for the bankruptcy factor when you are actually bankrupt.
Debt negotiation with a qualified and well reputed company can help in avoiding of filing for this problematic bankruptcy. The debt settlement is on the report for a period of seven years and there is no public record of this.
Tips on Debt Negotiation:
Following some tips on negotiating with debt collectors can be of a great help.
*It is important to get inside knowledge of your rights before you communicate with the debt collectors. You need to be aware that a debt collector cannot call you before 8 a.m. and after 9 p.m. This can be termed as ‘harassment’ and you can take legal action. *They need to talk decently and not use abusive language.
*They cannot threaten you with any illegal action.
*Make sure the debt collector is asking for a legitimate repayment. You need to confirm it is your debt.
*You need to get a debt validation notice after a period of five days after the debt collector has contacted you for repayment.
*This notice needs to list the amount you owe and the person’s name you owe it to.
*You need to be aware that a debt collector has few chances of winning a lawsuit against you. They would anytime prefer a partial settlement of the debt.
Debt negotiation can not only save on the money factor but also time. That is, if you make a choice of the apt company dealing in this. It is advisable to look for experience besides the qualifications and the reputation of the debt negotiation company.