Debt Negotiations

When people envision banks, financial institutions, and other various lenders, they see soulless corporations ready to pounce and foreclose their home as soon as the opportunity arises. But the reality is many of these lending companies are willing to make leeway for a debtor to alter an existing contract to one they can afford. After all creditors rather see some form of payment than nothing at all. Debt negotiation is a very real thing, and if done with expertise it can save one from bankruptcy.

With debt negotiation, it is not uncommon for debtors to be able to cut debt balances by 50% by utilizing a variety of different negotiation tactics. Many creditors are willing to settle unsecured debts such as credit card debt or medical bills and sometimes even omit them entirely. This can be done because under chapter 7 and 13 bankruptcy, many unsecured debts are able to be discharged completely leaving creditors willing to sacrifice a lot to avoid a debtor filing bankruptcy. Concurrently, creditors are sometimes able to report the debt in a way that is less damaging to an individual and help salvage a credit score. Not only can you settle many unsecured debts, but according to Bradford Law Offices, PLLC, a debtor may be able to lower their existing interest rates through negotiating for a renewed payment plan. However, during these negotiations, lenders would rather accept large lump sum settlements opposed to monthly installments as they are hoping to take the easy cash rather than spend time constantly pushing late notices.

Creditors do not typically want to use litigation as a response to default payments, but they will if a debtor does nothing to try and make payments. They would rather help negotiate with you so that both parties can maximize their interests in the matter. Creditors need to be paid and debtors need some empathy, and through debt negotiation hopefully everybody can reach an agreeable agreement.

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