If you are struggling under a mound of debt, you may be able to work with creditors and even debt collectors to make things more manageable. This is often called debt settlement or debt negotiation. For example, you might settle a debt by getting the creditor to accept a lower amount if you pay a lump sum up front. Or perhaps you can negotiate lower payments, either temporarily or permanently. Before you contact the creditor or collector, figure out your goals and pick a few negotiation strategies. Below you’ll find articles to help you through the process.
And sometimes you might want help in dealing with your creditors. Below you’ll find information on how to get reliable help, as well as information about things to avoid, like debt negotiation firms.
Avoid these common pitfalls when you are negotiating with creditors to reduce debt.
The IRS may count a debt written off or settled by your creditor astaxable income.
Before you hire a lawyer to negotiate with your creditors, consider the pros and cons.With the right negotiation strategies, you might be able to reduce your debt.
With the right negotiation strategies, you might be able to reduce your debt.
Learn about the advantages and disadvantages of debt consolidation and bankruptcy for dealing with debts.
Making a partial payment to a creditor usually doesn t stave off collection, and it might hurt.
Tips for dealing with creditors when you can t pay your bills and past due debt.
Legal aid clinics and credit counseling agencies can provide free or low-cost help in negotiating with creditors to reduce your debt.
If you have trouble paying your car loan or lease, try to work out something with the lender.
Take steps to reduce, eliminate, or better manage your high medical bills.
If you have high credit card debt, you might be able to settle the debt for less than the full amount. But beware of the downsides to credit card debt settlement.
Using a debt negotiation, debt settlement, debt consolidation, or debt elimination company is usually not a good idea.
Learn about debt management plans (DMPs) and how to avoid scams.
It s usually wise to steer clear of debt negotiation firms. Here s why.
Before you sign up for a debt management plan (DMP), ask these questions.
Learn about the many dangers of using a debt consolidation company.
The FTC Telemarketing Sales Rule places some restrictions on debt relief services.
Learn about the risks and pitfalls of using a debt settlement company.
Steer clear of companies charging high fees and claiming they can reduce or get rid of your student loan debt.
Here are some options when negotiating settlement of an unsecured debt with a collection agency.