Negotiate Your Debt Like A Pro

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Millions of American consumers are neck deep in debt, the only way they find to come out, is to file for bankruptcy. They fail to understand the after effect of filing bankruptcy as it can ruin the credit record. The consumers do not venture for other avenues which are available such as debt negotiation . By debt negotiation the person not only achieves debt free life but also manages to negotiate with outstanding balance he owes.

This article would show you the ways and tactics the professional negotiator employs so that you can achieve a debt free life. Here are few tips that can help you to negotiate with your creditors like a professional.

The different ways to negotiate like a professional:

 
Be aware of your rights:

In order to save yourself from the fraud, the debtors should be aware of the right the government has granted. The FTC has implemented the Fair Debt Collection practice Act which can help the debtors to negotiate with the creditors. FDCPA can protect you against the unfair practice of the creditors.

If you are aware of the law then it would be easier for you to negotiate with the debt collectors. The creditors won't be able to threaten you as you would be aware of all your rights and the laws enforced by the FTC. You can threat the creditors to take action against him if you find him dissuading from the guidelines laid by the FDCP Act.     
 
 
Contact the attorney general's office where a complain can be lodged regarding the the unfair means of practice by the creditors.   
 
Estimate the total amount you have to pay back:

Calculate the total amount you have to pay and then negotiate to reduce on the total outstanding amount. Just don't send the creditors  post dated checks and don't give a consent to automatic electronic payment from the checking account.

 
Do not reveal all information to the creditor:

Certain information about yourself should not be revealed to the creditors. Do not let the know your bank account number and also your office related information.

Calm and composed are the key word to achieve a good deal:  

Always keep your focus on negotiation even if your creditor tries to agitate you. Control yourself and place the demand firmly in front of your creditor. The more your cool the more positive result can be derived out of it. 
 
 
Record the phone calls:

Attach a recorder to your phone so when the debt collector tries to threaten you let him know that the conversation is being recorded and that would be placed in the FTC's  office. You can negotiate on your terms when you inform them about the phone recorder. This would also keep them at their best behavior. 
Keep a record of the documents: Keep the record of the collection calls and maintain a file keeping the collection letters intact.

Keep a note:

# Day and time of each call

# Name of the collection agency

# Name and employee registration number of the caller and about the conversation

  
The recorded conversation can be an evidence against creditor harassment which you can place before the attorney's office and get a proper justice.  
 
Try to get a written agreement of the payment plan: If you have won the negotiation with the creditor then ask him to produce a written document regarding the payment plan. Once he give you in written by giving a detail description of the payment program he won't be able change the terms of the payment.

 
Send a certified letter to the creditor stating the detail of the payment agreement. If you send a certified mail then it would add credence to your letter and you would receive a receipt as soon as the letter gets delivered. Don't forget to keep a copy of the record. 
 
If you are paying the amount in a lump sum and in check then state that if  he en-cashes the check then it would be taken as “payment in full” this ternm should be negotiated with him before paying the amount.  
 
Negotiate regarding the credit record:

Ask the debt collector to remove the negative feed back from your credit record. And before you repay him ask him to mark your account as “paid in full” instead of” paid in settlement”. 

Slow and steady in your proceedings can win you a profitable deal:

Take more time to settle your debt this would help you to reap a good bargain. It can help in the process of negotiation as the creditors would be more desperate to settle the amount so that he can at least get a penny.  
 
Threaten him of filing bankruptcy:

The creditor would never want you to file bankruptcy as he knows that if you fie then he won't get a penny. He would run at a loss so he might agree to negotiate on your terms and condition.

  About the author:

This post is done by Kevin Craig who is a financial writer of OVLG community.  He has helped lots of debt burdened people with free counseling and advices.

Comments

[Melissa Cibelli]

Very timely, particularly in an era where it seems like debt is running rampant and we are living in a credit-based society.

One question: Can you give me some insight as to what debt means for next of kin? For example, if a debt collector is seeking out a parent, how could that debt impact children, if at all?