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!

Related posts:

1. Understanding Credit Card Debt Reduction & Settlement
2. How To Qualify for a Debt Settlement ?
3. Debt Settlement Vs Debt Consolidation – Don’t Make the Wrong Choice
4. Negotiate Your Debt Like A Professional!
5. Adding Tradelines And Other Ways To Improve Your Credit Report