Macco Law Group, LLP

How can you negotiate debt reduction?

How can you negotiate debt reduction?

As a New York resident struggling with debt, you have a number of different options available to help you back out of it. Though bankruptcy is one possibility, did you know that it may also be possible to negotiate with your creditors to get your debt reduced instead?

FindLaw goes into detail on debt settlement and negotiation, which can be a tricky field to navigate for those who don’t know what they’re doing. It’s also not without some risk, because there are numerous fraudulent debt negotiation programs out there aiming to trick you into parting with your money and damaging your credit even further.

If you are interested in the possibility of reducing your debt, you will need to contact a creditor. From there, you must explain exactly why and how you’ve fallen into debt. This should be kept short and sweet, but contain the key points of information you want to get across. It must also be truthful.

The process of negotiation itself and how successful it is usually depends on what you’re willing to do to get your debts reduced and how much you can reasonably work with your financial situation. Remember to take notes, ask questions, and save all of your mail when dealing with creditors in a debt negotiation situation. Record down everything that you can in writing, and put your most pleasant foot forward.

Due to the delicate nature of debt negotiation, you may want to contact an attorney before you go through with anything. This way, you will have a professional on your side who can help you get the most out of any deal.