Did you know that many banks and credit cards are accepting settlements on outstanding debts in lieu of full payment. In days gone by you needed to be a master negotiator (and it doesn’t hurt if you are a great negotiator) now the current economy has made it common practice for companies to accept at least SOMETHING towards the debt.

Of course you won’t find any signs up in their offices shouting out “We accept debt settlements”, but many consumers are finding that a simple phone call to their credit card company can result in a 50% reduction in their debt, the catch is you need to be able to offer them a lump sum settlement. Lets say you owe them $1000. To work a good deal you need to be able to tell them hey, I know I my credit card debt with you is $1000 (or bank loan, whatever the case maybe) but I’m not sure how much longer I can keep up the payments. What I would like to do is offer you a lump sum settlement of $500 which I will pay within one week of obtaining a letter from you on your company letter head, signed by a manager that my lump sum settlement will be considered payment in full for this debt (or loan).

You may have to fight a bit for that 50% but it can be done. If you are a great negotiator you might be able to do that easily or get an even bigger reduction.

For anyone who isn’t a master negotiator take the time to practice with someone. Have a friend pretend to be the credit card company, and practice, practice, practice until you can do it easily and feel comfortable. Have your max amount in mind, but start off low and let them work you towards that. If they don’t bite, don’t be afraid to hang up and try again on another day. You may get a better service rep. Good luck!

Many people are concerned about maintaining good credit history and for good reason. We all know that enjoying good credit standing gives a person the power to choose lenders and it gives them stronger negotiating advantage as well. On the contrary, a person who suffers from a poor credit rating may have limited choices when it comes to loans or credit cards. Add to this, many lenders who offer bad credit loans and bad credit credit cards impose high interest rates to make up for this risk. Read more about How to Start Your Own Credit Repair Business

The exact details on bankruptcy proceedings may vary from one State to another. For those who intend to file for bankruptcy, they should be aware of the new bankruptcy laws amended since October 17,2005. Let’s take a look at the basic procedures or changes made in the bankruptcy law. Read more about Bankruptcy: What to expect?

When faced with debt problems, there are two things that one may consider- to seek bankruptcy or debt consolidation. Which of these two options are better? Experts may have their own opinions when it comes to making the right choice.

Some financial experts may say that bankruptcy is a better choice because it allows you to be completely free from debts. Others may disagree and suggest debt consolidation. In this article, we’ll discuss the basic points about these two options to help you decide which one is the better solution for you. Read more about Which Is Better - Bankruptcy or Debt Consolidation