|
How Did You Get To This Place?
If you are drowning in debt, you are probably spending a lot of time thinking about how you got to this point and how you can possibly fix the problem. You are losing sleep, in a constant state of stress and anxiety, and see no way out. Will you ever lose hope? No, because there are solutions for you. Doing nothing simply increases the anxiety and potential for physical ailments. The first step in resurrecting your hope is being proactive and developing a plan.
You Have Options
Some things need to be accomplished right away. If creditors are calling you over late and missed payments, do no make empty promises to pay them soon. They will simply increase their contacts. Tell your creditors that you are not able to pay them right now and that you do not know when you will be able to. You can tell them you are considering bankruptcy if, in fact, you have thought about it. As well, tell your creditors that they may not call you at work. If collection agencies are calling you, tell them not to call you at work and send a registered letter telling them not to call you at home either. All communication with a collection firm must be in writing, because you will want specific information about the total debt amount, any fees that have been added, and whether the debt has been transferred to them or sold to them. This is an important difference.
-
You cannot negotiate with creditors unless you are 60+ days late. Your negotiations should include lower interest rate, lower payments, and a lower total debt amount. If your creditor believes that you truly cannot pay, he will be much more willing to negotiate. Some debtors have been able to achieve a 50% reduction in total debt amount.
-
Request of collection firms a debt validation (in writing, registered mail, return receipt requested). This will give you the name of the original creditor, the debt amount, any additional fees tacked on, and, more important, you may be able to learn if the debt has been transferred or sold. If transferred, the collector will get a percentage of whatever he is able to collect. If sold to him, the collector has bought your debt for a fraction of the total, and your negotiating power has become much stronger. Some debtors have been able to get purchased debt down to 35% of the original amount.
If all of this seems daunting, it is. You will need time, stamina, and good negotiating skills. If you are not confident in your own skills, will you ever lose hope? No, you will not. You will get yourself to a debt settlement professional who can take on this task for you. There will be fees involved, but those will be included in your new settlement payment. The professional has the contacts with creditors, has solid negotiation skills, and does this for a living. Shop around for your settler, for their effectiveness and fees vary. Check references and compare the fees. This is a competitive field which is a plus for you.
|
|
|
|
|
