Skip to main content

Debt Negotiation can Help Your Financial Future

Can you negotiate with a debt collector?

There are times when finances get out of control; this is when debt negotiation can help. Negotiating debt is nothing new, what is different is that more people are having debt problems and they don't know what to do about it. Debt also has a huge impact on your financial future; shedding some light on the debt negotiation process will help you decide which avenue to take.

There are certain areas of debt that can be negotiated. You can do this yourself, but because these situations are highly emotional mistakes can be made. Let’s take a look at how the process works.

Debt Negotiation

When you can't pay your bills any longer your lender can negotiate new terms with you. They will do this in lieu of you filing for bankruptcy because they get nothing if you do. There are three areas which you can negotiate, they are: Interest rates, terms (length of payments) and reducing the principal balance. Your lender will be more flexible in lowering interest rates and give you longer to pay back before they will reduce principal. This is where you need to be careful, if not your financial future could be consumed with a lot of long term paybacks.

Your whole objective in debt negotiation is to get as much principal reduced as you can. It is not an issue of credit scores at this point; it's getting rid of debt as quickly as possible.

Hiring a Debt Negotiation Attorney

Hiring a debt negotiation attorney is one option you need to consider. Since this is a highly emotional situation, and your financial future is at risk, hiring an attorney can be money well spent. They will definitely have your lenders attention and attorneys know the fine points of the laws better than you do. Your lenders also know that attorneys can advise you about filing bankruptcy and banks don't want to hear this.

A good debt negotiation attorney can save you 50% or more when it comes to reducing the principal. You will have to prove that you are in financial hardship; your lender won't take your word for that.

Anytime you enter into these types of debt negotiations, your credit score is affected. This is why you need to resolve these situations as quickly as possible. You want to get your financial future back in order and start rebuilding your credit.

With a debt negotiation plan in order you can be back to normal in a few years. Rebuilding credit is not that hard and your financial future will be right back on track again.

Comments

Popular posts from this blog

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Brief Overview of Credit Card Machines

The world has witnessed so much of modernization eliminating the cash transactions from businesses. These days we have all sorts of online transaction which is popularized by the help of credit card machines. This is a device that can do transactions with a debit card or a credit card. Credit card machines securely transmit funds from one account to another. It is a Point of Sale terminal that can do transaction with a credit / debit card. This machine allows a merchant to insert, swipe, or key in manually the required credit card information and transmit such data to the merchant service provider for consent and then later on the transfer the fund to the merchant. It is used by merchants to directly capture card information instead of manually entering it in card details. Credit card machines are efficient enough to provide the benefit of decreased transaction processing times.

Four Things to Know About the Housing Market in 2021

Due to the Covid-19 pandemic, the increase in the number of people working from home as well as the initial ban on property transactions in the first lockdown, the housing market in the UK was majorly affected. After the first lockdown, the housing market restarted in the UK and was allowed during the second and third lockdown. The government introduced the stamp duty holiday which definitely helped boost the housing market as well as the buyer's confidence, and due to its overwhelming success, this scheme has been extended till July 2021. Even though the demand for homes increased, the average price of property rose in certain areas and government schemes worked like a charm, the housing market was nowhere close to where it was before the pre-Covid era. While no experts can predict with any amount of certainty the future of the housing industry in the UK, here are the four things that you need to know about the housing market in the UK in 2021. Increase in demand for properties in

Peer-to-peer Lending Oprions for Students

Is peer-to-peer lending safe? Going to college is necessary in this day and age if you hope to get a good paying job. However, finding the money to do so isn’t always easy. One method of getting money for college is to take out a student loan from the government. Another is to go a private lending institution, such as a bank or credit union. A third method, and one that is becoming more and more popular, is to get a loan from a private individual. This type of loan is usually called peer-to-peer (P2P) lending. Following are a few options for students who are seeking a peer-to-peer loan. What Is Peer-to-Peer Lending? Peer-to-peer lending is essentially a financial agreement that takes place between individuals. One party, you, borrows money from someone else. It works the same way as a traditional loan because unlike a scholarship, grant, or gift, you will be expected to pay the money back, on time, and with interest tacked on. You and the lender agree on how much will be paid back wit

Responsibilities a Property Management Company Needs to Handle

When you are considering investing in a residential or commercial property, you need to plan a number of things. At such times, getting help from the right professionals may be of immense help. You may consider opting for property management companies for handling the responsibilities. Understanding the tasks, before and after the purchase, these companies handle is necessary before you employ them.

Why comparing ISA rates is a necessity?

Investment is not about the capital you put in an account, it is your ability to judge risk and return trade-off. Unless you weigh your decision carefully you may end up making no profit. Choosing the best ISA provider therefore could be a difficult task. If you are investing in cash ISAs you must have few hundreds of options to test the best. One should compare ISA rates for the bigger return. But who can help you on this? How do you know which Cash ISAs is giving better interest rate? What are the terms and conditions? Who are the account providers? Are these accounts easily accessible? What others are talking about those ISA accounts?  How advantageous cash ISAs could be in terms of risk coverage?