Debt Negotiation

Debt Negotiation services also known as Debt Settlement, Debt Reduction or simply reducing credit card debt.

Debt Negotiation is the process of negotiating with a creditor to pay off a percentage of a balance owed on old bills, invoices, lawsuits, liens, medical bills, utility bills, and judgments. This process is commonly used in debt settlement and debt arbitration. Since 30% of the 1.6 million bankruptcies filed in 2005 occurred on debt that was current, it is often in the best interest of creditors to negotiate management debt repayment schedules with debtors experiencing hardship. They do this through their own programs, promoted through credit counseling, or through independent debt arbitrators using debt negotiation.

Welcome. A debt negotiation company will assist you in finding a solution to eliminate debt for anyone that requests it. A debt negotiation service can help you by creating a customized debt elimination plan that will reduce your credit card and unsecured debts by as much as 50%-75%. An experienced debt negotiation staff reduces millions of dollars in consumer and commercial debt every year.

In addition, debt negotiation Companies uses settlements to reduce customers debt. The settlement method is recognized industry-wide as the most effective way to eliminate debt. Our debt negotiation companies do not work for credit card companies like Consumer Credit Counseling (CCC) or any other company. The primary goal is to help you avoid bankruptcy.

• Reduce your debt by 50%-75%
• Stop harassing creditor phone calls
• Avoid the nightmare of bankruptcy
• Be debt free in as little as 12 months
• Make one low payment a month
• FREE NO-Obligation consultation
• Late fees are waived
• Take control of your debt situation

Debt negotiation is the process of negotiating with a creditor to pay off a percentage of a balance owed on old bills, invoices, lawsuits, liens, medical bills, utility bills, and judgments. This process is commonly used in debt settlement and debt arbitration. Since 30% of the 1.6 million bankruptcies filed in 2005 occurred on debt that was current, it is often in the best interest of creditors to negotiate management debt repayment schedules with debtors experiencing hardship. They do this through their own programs, promoted through credit counseling, or through independent debt arbitrators using debt negotiation.

What is the difference between secured debt and unsecured debt?

An unsecured debt relies only upon your promise to repay (and the promise of co-borrowers and/or co-signers as well) the debt. The most common types of unsecured debts are credit cards, department-store cards, medical bills, and personal (signature) loans. A secured debt relies upon collateral or security for a secondary source of repayment if you fail to repay. The most common forms of secured loans are home loans (mortgage and equity line-of-credit), car loans and RV loans. Once default takes place, the creditor's recourse is usually to foreclose on a home or repossess a vehicle. A quasi kind of "secured" loan is a student loan. It's really a "guaranteed" loan, but the guarantor is usually the State or Federal Government. Because the lender can get guaranteed repayment, student loans can not be part of the debt negotiation / debt settlement process.

How long will it take to settle my debts?

The time required to settle all your debts depends upon your specific financial situation, including the amount of debt, your income and expenses. A Debt Analysts can provide you an estimate during your consultation. Typically, you are able to settle your debts within three years.

How is my credit affected?

Part of the debt negotiation process is to request that creditors reflect your accounts as having been paid or having been settled, with zero balances. One assessment factor that creditors use in evaluating an individual's or entities credit-worthiness is their debt-to-income ratio: the amount of debt compared to income. Because a Debt Settlement Program reduces your debt, your debt-to-income ratio will improve. Additionally, attempting to resolve a debt through settlement can be looked upon more favorably than filing bankruptcy.  Ask your debt analyst on how the debt negotiation process will effect you.

How Does Debt Settlement compare to Debt Consolidation and Consumer Credit Counseling?

In a Debt Settlement Program, they negotiate with your creditors to settle your debt for amounts significantly less than you owe; typically for 50-75% of your outstanding balances, saving you money on debt principal and interest which provides you the opportunity to pay-off your debt faster.

Debt consolidation is merely converting the total of all your debts into a single debt that represents the total of them all, which you must still pay off. Moreover, what often happens is that once the credit cards are paid off via a consolidation loan, there is available credit to the consumer and the temptation to use the credit cards again is too much. Many people end up with double the amount of debt they began with! Even worse, many debt consolidations are secured by the borrower's home which turns the unsecured debt into a secured debt.

Consumer Credit Counseling Agencies claim to be non-profit agencies that for an 8-15% fee paid by the creditor can lengthen the term of your debt and reduce some of your interest. Your outstanding debt principal is not reduced and you may be charged additional fees by the CCC agency. This approach is typically a longer-term approach to debt negotiation, compared to debt settlement.

Collection agents may not:

• Harass you with repeated calls, when you've told them not to call.
• Call before 8 a.m. or after 9 p.m.
• Call at work if you have asked them to stop.
• Talk to anyone but you, or your attorney, about the debt.
• Threaten to garnish wages or seize property unless they actually intend to do so. Garnishment is illegal in some states, and in others requires a court order.*
• Threaten to sue unless they are actually taking legal action. In some states, third-party collection agencies may not sue.*
• Threaten you with arrest or jail.
• Falsely claim to be an attorney, a representative from a credit bureau or a member of law enforcement.

*Check with your state attorney general's office.