Successfully Negotiating with Creditors to Settle Your Debt

When you’ve fallen behind on your debt and you’re facing bankruptcy, it becomes more important than ever that you take the bull by the horns and get your arms around your outstanding financial obligations. Unfortunately, this often requires learning the fine art of negotiation and hoping for the best. As the process gets more and more involved, you will need to lean on an experienced debt management lawyer to help you deal with your creditors. There are, however, a couple of important tips you should know out of the gate, such as:

Settling for Less

Many creditors will have programs in place, but it helps to go for the minimum amount possible when endeavoring to settle your account. It’s not uncommon for creditors to settle for half of your outstanding balance. Find out just how much (or little) you can get away with paying.

Check Your Bank Account

If you’re having money problems, it’s probably because you couldn’t afford to pay your bills, to begin with. Just because you’re settling for less doesn’t mean you can still keep up with the payments. It’s important that you assess your financial readiness and verify that you can actually make good on the settlements you’re promising.

Prepare for the Worst

While many people are loathed to even consider bankruptcy as a solution to settling their debts, in the end, you may realize that your best bet is to start over. It’s important to stay realistic and keep bankruptcy in the back of your mind as a real possibility. Bankruptcy doesn’t mean financial ruination; it just means a temporary setback. The tradeoff, however, is that you get to rebuild your finances and make a fresh start.

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