Debt Negotiation Advice

Is there any way you can negotiate w/a creditor to lower the amount of debt owe? DESP Seeking Suggestions!!?

I have numerous debts owed to several different creditors from 4 years ago. Today is the day I am going to contact two of the creditors to discuss paying my debt owed (I am on my way to becoming debt free and rebuilding my credit!) Is there anything I could say or do to negotiate the debt I owe? I owe Verizon $1100 and Victorias Secret $591. Also, what do I say or how do I go about making sure the "bad marks" are taken off my credit history? I desp need help! 10 points best answer thank you!

Public Comments

1. The best chance you will have of lowering the amount you owe is to discuss with the company in question and convince them the alternative is for them to get nothing. If you tell them that you want to do what is right, but are about to declare backrupcy, then they would be more likely (not a definate!) to reduce the amount you owe in an effort to get something instead of nothing.
2. You can talk to your creditors, indicate that you want to clear your debts and ask them to make whatever adjustments they can. They may be willing to lower the interest rate, but they will probably reluctant to decrease the amount you owe. Typically, as long as you are making any payments, the creditors are happy to get your interest and penalties. It is only when you get into default that they start to cooperate. but going into default does nt do your credit rating any good. One approach is to indicate that you are willing to repay the entire debt in a lump sum if they will reduce the amount. For example, you could offer Victoria's Secret $400 to clear your account, or Verizon $750. They may accept or not, but you lose nothing by trying. The bad marks will be taken off your credit history as you develop the habit of paying all your bills on time. It may take several years before the bad history is wiped out, but if you manage your money properly, you will be living correctly.
3. If you have money available you can try contacting the creditors and offering to pay a lump sum, for example ask them if you pay a lump sum of say 80% of what you owe right now would they wipe out the 20% and put you in the clear, i have done this myself and some are happy to do it. keep all proof of what you have paid cause you may need it to help clear your credit history report, you will have to pay a small amount to see your credit history but once you have it you can contact them with proof of what you have paid and they can usually sort it for you from there. its always worth getting a copy of your credit history anyway cause when i got mine i found things on there that had nothing to do with me and 2 of the debts they had as outstanding i had already paid off years ago, thats why you should keep all your proof.
4. I am a former CFO, and can tell you absolutely that your debts, given the time frame mentioned have either been written off or fully reserved for. What this means to the company is that they already took the financial loss on your debt to them. This may or may not be a good thing. Worst case, why go thru all the bother unless its for 100% of what you owe us; no sympathy. Best case, a "dead customer" willing to make a partial payment-found money! Now negotiate short and sweet, most important is to have creditor issue "debt settled" statement along with agreement to accept 50% payment. Do not make opening statement about how much you are willing to pay; do say you are trying to clear your debt burden with all your creditors or else you will be forced into bankrupcy. Sit back and wait for their response. You now have the advantage. My guess is they will initially ask for 70%; your response will be: I can't afford that. Next they will say 50% or will ask how much can you afford. In the first instance your response is the same and in the second you tell them I was hoping for around 20-25%, which I think I can manage. See where I'm going with this? Lastly, don't worry about them offering monthly payment plans to recover the whole debt. Once you mention bankrupcy, only an idiot would re-extend credit. Good luck