New York residents who are looking to get out of debt have several options available to them. One possibility is to negotiate with creditors directly in order to get a repayment or settlement plan that is tailored to fit their current situation.

The Consumer Financial Protection Bureau takes a look at one way to negotiate a settlement with a debt collector. They suggest a three-step process. It involves first learning about the debt in question. Then, the consumer will create a plan for a settlement or repayment proposal based on the knowledge gained through their debt research. It is important for this plan to be realistic, since the success of a negotiation will likely hinge on that. Finally, the proposal should be taken to a creditor for approval.

Credit.com then looks at the best ways of handling these debt negotiations while they’re happening. This includes guidance on what to do, as well as tips on how to act. For example, people should remain levelheaded while negotiating and should avoid drama at all cost. This means not losing one’s temper or exchanging insults. They also suggest dealing with creditors directly and not collectors. A person should be reading and saving all of their mail, writing everything down, and getting any agreements or statements in writing, too.

In the end, the goal should be to negotiate a settlement or repayment plan that is feasible to pay off. Additionally, the creditor should agree to remove the late payments so as not to impact the consumer’s credit score. In doing these things, debt should become a problem of the past.