What is Debt Negotiation?

What is debt negotiation? Debt negotiation is an alternative to bankruptcy. If you are behind on your credit cards and unsecured debt, you do have options. Often times you can settle your debt for pennies on the dollar. The average debt negotiation settlement will range anywhere from 40-60 cents on the dollar. Once the debts are settled with you creditor, your credit score will go up. You will no longer have negative trade lines reporting on your credit report. If you are having financial trouble, debt settlement is a great option but it still may not be appropriate for you. You still may want to speak with an attorney just to see what the ramifications are of your financial condition. Do your homework before making your decision. Getting out of debt is one step at a time.

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Is debt consolidation right for me

Is debt consolidation right for me? It depends. If you have been late a few times and your rates have been raised to where your can't afford the payments anymore. You may want to consider a debt consolidation program. Typically we are talking about consumer credit counseling. It is no longer a dirty word. It used to be that in a CCCS program you could not get a mortgage. It was looked at as a chapter 13 bankruptcy. Now you can buy a home even if you are in a consumer credit counseling program. The history shows that people in a consolidation program are no more likely to default than people that are not in a program. One nice thing that a negotiation program can do for you is to stop rolling lates and over the limit fees. This can be a real killer for people.

Before you sign up for any program, check online with the rip off report and the Better Business Bureau.

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Debt Negotiation as an alternative to a Bankruptcy

Debt Negotiation has been given a bad rap. My experience has been that a lot of people have been mis represented about how the process works. Debt Negotiation is playing hard ball with your creditors. Your credit will be negatively affected, you may get calls from your creditors and you can get sued. A good negotiator can help you navigate through these waters and save a ton of money. On average people can settle for about 50% of what they owe. Anyone who boasts a higher amount is probably not able to provide this.

A debt consolidation might be a better route to go if you are still current on your bills. Bottom line use an attorney if you are going to do a debt negotiation program. You have recourse and your money is safe in their trust account. They are accountable to their state bar for how the account is managed.

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