Negotiating with creditors can be tricky but it is possible. Keep in mind that in most situations the lending company would rather settle a debt for pennies on the dollar than not receive anything at all. Once your debt goes to collections it may be a little easier to deal with them and negotiate a settlement amount. Just give them a call. You will most likely be forwarded to a collections department. Calling is indeed a sign of good intentions on your part and will work on your behalf as you attempt to strike a deal.

When you are in the process of making payment arrangements make sure that you document everything in writing. Sending letters by certified mail stating the amount agreed on and the date the agreement was made and with whom, will go a long way to protect you in case the creditor conveniently forgets the deal they made with you.

Also, you will want to keep a phone log of who you talked to including when and what was said. If you talk with a representative make sure that you get the name of their supervisor and discuss the payment agreement with them as well, because the representative may no longer work for the company at a later date and your information will be lost if you do not document it.

Coming to a settlement agreement will often eliminate all the interest and late fees and give you a flat rate that you must pay in order to make good on the debt and begin to restore you credit rating.

Debt Settlement - Credit Cards

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