Some Facts About Debt Negotiation
Debt negotiation typically means that creditors and lenders will negotiate with you in reducing either the amount owed or lower the interest rate itself, rather than risk getting nothing at all from you.
How Can I Find Out Whether My Creditors will Negotiate?
If you are unable to pay your credit-card bills, you may consider settling your debts. Most creditors would rather get something than nothing. Through bankruptcy, chances are they wouldn’t get anything. Be in communication with them and ask them if they are willing to take settlement offers.
How Much Should I Offer Them?
Creditors just want their money. They don’t care how much you owe anyone else as long as they get paid.
IT DOESN’T MAKE SENSE TO PAY ONE CREDITOR OFF AND STILL OWE TO THE OTHERS IF YOUR GOING TO HAVE TO FILE BANKRUPTCY.
You will need to add up everything you owe and try to scrape up 40-60%. For example if you owe $50,000, you will need about $20,000-$30,000. There are times when a creditor will go as low as 15%. This is a great deal if you have the money, but it really doesn’t matter if you don’t.
Get it in Writing.
Make sure you always document your conversations and pay with check or money order.
Call 480-755-8000 to speak with our Arizona debt relief attorney today for immediate help.