Consolidation Credit Debt

Consolidation Credit: Debt Negotiation

When exploring consolidation credit, debt negotiation often gets the brush-off. Yet debt negotiation can be a powerful tool in both lowering your overall balances and in ensuring a monthly payment that's management. If you're considering consolidation credit, debt negotiation should be an essential part of your strategy.

Where should you turn? There are services in Stonington CT that will help you consolidate your bills and negotiate on your behalf. [statetitle] and other states across the country regulate consolidation credit, debt relief organizations, and the like, yet there are still scammers out there who make promises to lower your credit card debt and then demand large payments upfront. In fact, the Federal Trade Commission recently shut down one such operation and proposed a settlement with an astronomical fine. So it's important to ensure that the organization or company that you deal with is reputable. You can do this by checking with the Better Business Bureau in Stonington CT, or by checking if there have been complaints to your Attorney General's office.

However, if you have the time and energy, both consolidation credit and debt negotiation is something you can do on your own. Your first step is to obtain a consolidation loan with a low fixed rate. You can think of this loan as the bankroll from which you can pay down your debts. While it may be tempting to spend it, resist the urge. A consolidation loan is best used to get back on a solid financial footing.

Once you have your consolidation credit, debt negotiation can begin. This simply involves calling each of your creditors and offering to completely pay off a debt at a reduced rate. For example, say you owe your dentist $1,000 and the debt is overdue but has not yet been placed in collection. Ask if you can pay a $750 lump sum and have the other $250 forgiven. More often than not, creditors will work with you and take what you have to offer. The only caveat is to make sure to get the agreement in writing before making the payment.

Similarly, debt collection agencies will often take a percentage of the outstanding balance in exchange for a lump sum payment. You may also be able to negotiate how the debt and payment is reported to the credit bureaus so that your credit rating doesn't suffer further. Again, get the agreement in writing before paying.

Consolidation credit and debt negotiation go hand-in-hand. Be empowered and use negotiation as part of your strategy to get those bills under control.