If illegal options for settlement of debt are to be considered, there is no need to restrict your self at sixty or seventy percentage of the amount owed. You can simply ignore the entire amount by not repaying even a single cent. However, such a move will have long term consequences on your credibility, financial stability and even your personal freedom.
If you want to legally settle your debt for less than the original amount owed, then you will have to enter into negotiations with your creditors and convince them to accept a lower settlement in writing.
You will be required to submit the reason for your request for settlement in writing to your creditors. However, do not been a hurry to provide this information in writing. It is only when you have completed the negotiations and are certain of securing a waiver ranging from sixty to seventy percentage of the original amount owed should you put things in writing.
This is because your request for settlement in writing is sufficient the reason for your credit score to come down. You do not want such a request on your personal credit history unless you get the corresponding benefits as well.
Negotiations often involve a cat and mouse game where you will try to convince the lender why you deserve a seventy percent waiver. Needless, no lender will be interested in sacrificing seven tenth of the repayment without any valid reason. The primary argument used by settlement organizations and expert negotiators is that pushing for a full and final settlement is only going to lead to bankruptcy. Unsecured lenders stand to lose the most if the individual opts for bankruptcy.
Of course, you cannot use bankruptcy as a threat if you have numerous assets which can be liquidated to recover the entire amount owed. That is the reason why this facility is restricted to those who are not in a position to repay their debts and whose assets are also not sufficient to recover the amount in full.
Once the lender agrees and signs on the dotted line and offers a settlement in writing, you can celebrate on having the saved seventy percent of the original amount owed.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.
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