Set Yourself Up For Negotiating Success

Anyone can find themselves in an overwhelming financial situation, and it can be difficult to see a way out. With help from negotiators, there is light at the end of your debt tunnel.

Before you take the drastic step of declaring bankruptcy, make sure you’ve explored all debt negotiation avenues, and leave the back and forth to the professionals.

Debt negotiation services are becoming increasingly popular, and it’s easy to see why. Your negotiator will work with your creditors on your behalf to reach a reasonable settlement. You have enough on your plate - know when to bring in the experts!

Before Starting Your Negotiating Journey

Here are a few things to keep in mind when it comes to debt negotiations:

• Creditors want to collect their money and may be more willing to work with you than what you might think
• Be very honest about your situation
• Don’t tell a creditor where you work or where you bank unless instructed to do so by a higher authority
• Pay attention to the fees that any lawyers or negotiators are charging you - you don’t want to be adding to your debt!
• If a settlement is reached, ensure all appropriate documentation is updated; otherwise, your credit score may take a significant hit

Set Realistic Expectations for Debt Arbitration

Don't wait until debt arbitration is court-ordered, voluntarily enter! During the arbitration process, you and your creditor will each have a spokesperson. Each spokesperson then works with the same neutral third-party individual. Together, these three will decide the outcome of the dispute. In some cases, your spokespeople will simply work together to reach a decision, rather than making use of a third party.

The biggest mistake people make going into debt arbitration is thinking that their debt will be eliminated. In reality, the only way to completely erase debt is to declare bankruptcy, which should always be a last resort. If a creditor makes a reasonable offer, be prepared to compromise. Remember, the point of all this is to make your debts more manageable.

Ready to get Started?

When it comes time to find debt negotiation professionals, you have a few places to turn to, including:

• Attorneys: many focus on debt negotiation and arbitration. Look into getting a referral from a trusted friend or your state bar association.
• The internet: simply search for “debt negotiation and arbitration” along with your city and state. That should yield a variety of results to start with!
• Credit counseling services: even if a local office can’t assist you, they’ll be able to refer you to people who can.

Tackle One Debt at a Time

When it comes to negotiations, it’s best to work with one debt at a time. Generally, those in debt see more favorable outcomes when focused on just one situation, rather than trying to tackle all debts at once.

Start with the largest debt first and go from there. As you move forward, you’ll get more comfortable with the entire situation in general, not to mention the fact that you’ll be in a better position to negotiate, as you'll be closing or paying down debts along the way.

Negotiation vs. Arbitration vs. Bankruptcy

Even all of these are debt solutions, they are not all created equal. Let’s take a closer look.

Negotiation

• Doesn’t become part of the public record
• Credit score can more easily bounce back

Arbitration

• Doesn’t become part of the public record
• Credit score can more easily bounce back

Bankruptcy

• Is part of the public record
• Remains on your credit report for years
• Is a legal document that is recorded with your state

As you can see, it is preferable to settle through negotiations or arbitration than it is to declare bankruptcy.

When Should You Seek Professional Debt Negotiation Services?

Have you considered finding a debt negotiator, but aren’t sure if it's necessary? Here are some situations that indicate you may need professional assistance:

• Multiple creditors
• Huge amounts of debt
• Tax complications - when it comes to potential issues with the federal or state government, it’s best to get advice from an expert

You don’t have to carry the burden of debt alone. There are many services available to you, all of which are designed to help make your debt more manageable.