People tend to panic when a debt collector comes calling. Especially because debt collectors tend to use scare tactics in effort to get people to comply with their demands.
However, even though debt can make you feel pretty powerless, you actually do have some leverage that you may be able to use to your advantage. As a Bankrate.com article explains, debt collectors are often willing to settle the debts for much less than you owe.
Often, the best chance at getting your debt reduced is by offering a lump sum settlement. In many cases, debt collectors try to convince you that they won’t take anything less than the full amount, but this isn’t necessarily the truth.
In some cases, debt collectors may even be willing to mark down your debt by as much as half if you are willing to put down a large payment. But even if you cannot afford to make a lump sum payment, you could still have success at getting your debt reduced.
As the Bankrate.com article explained, some debt collectors are willing to work with you on a monthly payment that you can afford, which means that you can work on repaying the debt without having your credit score ruined in the process.
The key when negotiating with a debt collector is to let them know that full payment on the debt isn’t going to happen. They will probably try to scare you and entice you to pay in full even if you can’t afford it, but it’s important to hold your ground. Eventually, they will often accept a lump sum or monthly payment plan.
However, negotiating with a debt collector can be very difficult, time consuming and frustrating. That’s why many people turn to an experienced attorney for help. Keep reading for more information on how an attorney can help you through the debt negotiation process.
