Debt settlement reduction
Debt Settlement Reduction: Taking the Reins
These days, Americans are drowning in an ocean of debt. According to the Consumer Financial Protection Bureau, debt collectors have one out of ten Americans in their sights. Some dollar amounts are miniscule, others are large, but they average out to about $1,500 per person. Unfortunately, many consumers don't realize that debt settlement reduction is an option, and even if they do, don't understand the proper way to go about negotiating a debt settlement reduction.
But first things first. Whether you live in [statetitle] or any other state, you always have the option of negotiating settlements with creditors and debt collectors. This means that you can agree to pay a certain amount in order to have the slate wiped clean. For example, say you owe a $1,000 medical bill to a hospital in Lovilia IA. If the bill is seriously past due, but hasn't yet been sent to a collection agency, you can propose to the hospital that you pay a $500 lump sum and call it a day. Because getting something is better than getting nothing, and having a settled account is less costly than the overhead of putting you into collection, they may take your offer.
Similarly, if a debt collector is calling about a bill you incurred in Lovilia IA, you could offer a lump sum payment that is significantly lower than the amount you owe. Again, the same principle applies: getting something is better than getting nothing.
There are a few caveats about debt settlement reduction. The first is never, ever pay a penny until you receive the debt settlement reduction agreement in writing. It's much to easy for a creditor or debt collector to deny agreeing to a debt settlement reduction. The second is never, ever, give the creditor or debt collector your credit card number or bank account number. Only pay with a money order or bank check. All too often, debt collectors keep taking money out of an account even after the debt settlement reduction amount has been paid. Finally, always keep copies of all correspondence and payment information. Indeed, make sure to send your debt settlement reduction payment via certified mail, return receipt requested. If push comes to shove, you want to ensure that you can prove you made the agreed-upon payment.
Remember, you can negotiate a debt settlement reduction. You have the power, so seize it!