Negotiating With Credit Card Companies - Business Negotiation

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Negotiating with credit card companies can difficult if you do not understand how the method of debt settlement works. Here is a small attempt to make you understand the internal dynamics of the method so that when you are actually attempting to get rid of your debt, you know exactly what to do.

Things to be remembered:

u The minimum amount of debt that you need to have is at least $ 10,000. This is the amount that has been predefined by law and you cannot violate the same.
u In case you are burdened with multiple debts, take steps to consolidate the same. You can opt for a consolidation loan or you can also opt for balance transfer. The idea behind consolidation is that you need to minimize both the cost and time of settlement.
u It is better that you hire a professional settlement company instead of negotiating on your own.

Choosing a professional company can be a daunting task. Things that you must look for while hiring a settlement company are: a valid license, TASC certification, internal revenue code 501 (c)(3) as a proof of being non-profit organization and the records of the company with Better Business Bureau.

Understanding debt settlement:

u Once you hire the debt settlement firm, disclose all the information related to your debt and financial condition. Based on these information, a settlement plan will be chalked out by the negotiator. GO DELINQUENT when the negotiator advises. The creditor will then wait for 90-120 days and sell off your debt to a collection agency for as low as 20-30 cents for each dollar.
u After this contract is signed between the creditor and the collection agency, the negotiator gets in touch with the creditor and gives a formal letter explaining why you failed to repay and why you cannot repay any more. The negotiator offers a better deal of 30-50 cents to the creditor and also threatens the creditor of bankruptcy and charge-off in case the later declines the deal.
u The creditor finds it better to lose something compared to everything and then agrees to the deal based on the fact that it will mean hundred percent returns on investment and eliminates the debt that you have by at least 50% of the total due. Depending on the negotiation power of the negotiator, you can get up to a 70% elimination.
Debt settlement is a legitimate alternative to filing bankruptcy however it is not the only debt relief option available. Check out the following link to speak with a certified debt relief specialist who will go over all your options for free:

Source: http://business-negotiation.blogspot.com/2012/08/negotiating-with-credit-card-companies_5.html

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