By Dan Delgado
Negotiating structured settlements with your creditors is a simple process, always stay in touch with them and keep a log of all telephone conversations and correspondence from them. Make sure if a settlement is struck with one of your creditors to have the terms in writing before you make any payment, this written confirmation is called a Settlement Letter.
In most cases, in order to negotiate structured settlements with creditors a consumer must be at least 90 days behind or delinquent; most original creditors will not listen to or partake in negotiations until then. The best time to settle a credit card account is while it is still with the original creditor and the delinquency time has not exceeded 180 days, arrangements can be made during this time for savings of over 50% on the total debt in most cases.
Staying in touch with creditors during the negotiation stage is a plus and keeping a log of all telephone conversations and correspondence from them is a must. Send all correspondence to creditors via certified mail with a return signature card. If a settlement is agreed upon a settlement letter must be provided before any payment is forwarded, once this letter is received it is OK to make a payment over the telephone only to an original creditor. Never make a payment over the telephone to a collection agency, as they do not follow the same standards that creditors do.
Always negotiate from a standpoint of power, as if the funds were always available to pay for a deal in a lump sum payment. Creditors like the fact that they will get their funds in one payment, always negotiate by keeping them on the edge, not the other way around. Always begin any negotiation by offering as little as possible, usually about 20% or 20 cents on the dollar. Work this percentage up very slowly and never look too eager to settle, never tell a creditor the funds are readily available; always tell them you may come up with them through the help of friends and family. Always set payment or payments for settlements on a date when the funds will be readily available not beforehand.
The help of a strong Hardship Letter explaining why the accounts have fallen behind will always be a big help, these hardships can include medical, loss of income, bankruptcy among other reasons that will carry heavy weight when it comes down to being awarded a reasonable discount on credit card debt.
To sum this article up, always negotiate structured settlements from a standpoint of power; never let your creditor see you sweat; stay calm and let them make as many offers as possible. Never tell them funds are readily available, draft a strong Hardship Letter and never pay for a settlement with out a physical Debt Settlement letter.
Dan Delgado is a Do It Yourself Debt Settlement Coach, Debt Settlement Counselor and Debt Settlement Arbitrator. For more information regarding Do It Yourself Debt Settlement please visit http://pemperandgartle.com/
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