Before your skepticism gets the best of you let me say that it is entirely possible to negotiate your own debt. I know because I recently negotiated my own debt to about half of what a debt settlement company was offering and about a third of what bankruptcy would have cost me! For more information click here.

The first, and most important item when negotiating your own debt is know your rights. You can bet that the debt collectors will know theirs and they are counting on you not knowing yours. Here are some ways to bring your negotiation to a successful conclusion.

Remember that a debt collector is a tough, well trained, negotiator and most likely has years of experience. You will have to be on your toes and follow these tips to help you come out ahead.

Know your rights.

When collecting a debt from you, a debt collector must play by the rules. Many time they take advantage of people who do not know their rights so it pays to know yours. For details, check out this consumer brochure on fair debt collection from the Federal Trade Commission.

Also, review the free consumer brochure on debt collection available from the National Consumer Law Center. Call NCLC’s publications department at (617) 542-9595 and ask for a copy of “What You Should Know About Debt Collection.”

All states have their own debt collection laws and you need to familiarize yourself with the laws in your state. For more information, and to be prepared with all the do’s and don’ts, contact the attorney general’s office in your state.

When you know your rights, debt collectors know they can’t get away with many of the commonly used practices against less knowledgeable customers. “They’re less likely to try aggressive tactics.” and this could pay off for you in the end.

Start from the beginning and decide what is important.

Prioritize your bills.

Contrary to popular belief among debt collectors, an unpaid credit card bill is not the most important bill you have to pay this month. Putting food on the table and keeping a roof over your head easily comes first.

It doesn’t make sense to put yourself in a bad position because you are paying credit card debt first. List your priorities, Mortgage (rent), Groceries, Medications, Vehicle, then go from there.

Estimate how much you can pay and offer less.

As you will see in my book, I suggest starting very, very low and I will show you the exact place to start your negotiation. Do not negotiate a dollar amount. You want to negotiate a percentage. Yes, they will laugh at your first offer but you are “throwing out your anchor”. In negotiating terms that means you are setting the bar and you want to set it very low if you want to end up very low!

Do not send postdated checks or arrange for automatic withdrawals from your checking. There will be substantial pressure to do this and you must not give agree to it. If you do, this puts the power in the collectors hands and presuming goodwill from the other side will get you in trouble every time.

Stick to the facts.

Just stick to the facts. They hear “down on your luck” stories all day and it does not evoke a lot of sympathy on their part. Just keep in mind that they do this for a living and keep it strictly business.

Keep private information private.

Never give up any more information that you need to. A debt collector does not need personal information such as where you work, where you bank or your checking account number.

Keep your game face on.

A debt collector will try to rattle you because you give away much more information when you are emotional. No matter what a debt collector says, keep your cool and stay focused on the negotiation.

When you sound in control, you are in control. The more in control you sound and the more likely you are going to get what you want out of the negotiation.

Tape the call if you can.

Nothing will keep things above board more than announcing that you are recording the call. This is a great way to keep a debt collector in line. Plus, you get a record of the call.

Thirty-five states and the District of Columbia allow you to secretly tape your phone conversations. In the other 15 states, you can tape with the other party’s permission. And if you tell the debt collector you are going to tape and he or she keeps talking, that’s considered giving permission.

Write Down Everything.

Keep an organized file of all collection letters and take detailed notes of all calls. Note the day and time of each call, the name of the collection agency, the first and last name of the caller and what was said. It is amazing how you can turn the tables by asking their first and last name. They know your information so take away their anonymity. It gives you the power from the start.

Get it in writing.

“If you negotiate it, get it in writing” says Jeffrey Kurz, an attorney in Youngstown, Ohio. “You want to take every precaution that you are released from your debt when payment is made”.

I recommend using an attorney during this process. Mr. Kurz assisted me and I highly recommend him.

Send a letter to the debt collector outlining the payment agreement. You’ll want to send this letter via certified mail so you’ll receive a receipt once the letter is delivered. Keep a copy for your records.

If you plan to pay by check, add the following disclaimer: “Cashing this check constitutes payment in full.” Write this right on the check.

Wipe your credit clean.

Request that the debt collector remove any negative information they’ve placed on your credit report. At minimum insist that your account be listed as paid in full rather than paid in settlement. Again, it is important to get it in writing.

Don’t be pressured.

A debt collectors job is to get them to send them money immediately. Don’t do anything until you have your attorney confirm everything and a payment agreement is in writing. Don’t give in to the demands of pressure tactics. Follow the proper steps to get it right.

Negotiate at the end of the month.

It’s a simple fact that you have more leverage at the end of the month. Collectors commissions are based on what they do each month so wrapping things up prior to a new month is in their interest. Having this information in your back pocket might just turn a good deal into a great one.

Gregg Zban is the owner of Debt-Relief-Pro.com, a website dedicated supplying quality information on debt relief, debt consolidation, debt settlement, debt reduction and debt elimination.

To learn more please visit http://www.debt-relief-pro.com

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The economic downturn has caused numerous problems; bankruptcy is one of the unwanted gifts of this financial slump. Almost every second person is coping with multitude of issues, which are forcing them to declare himself/herself bankrupt. Credit cards have surpassed their limits and to pay the mortgage is beyond your capacity. In the present scenario, USA is facing the worst condition in its entire financial history; consequently, every American state is dealing with countless cases of bankruptcy. But there is help out there if you know where to look.

Situations and Possible Legal Support

You are looking forward to protect yourself in spite of the fact that you have faced one of the most pathetic economic situation ever, which resulted in great losses. In such situation, you badly require a supporting hand of attorney lawyer; bankruptcy lawyers are able to provide you all the assistance you require to save yourself. These lawyers offer their guidance in almost every debt relief. Mostly, they conclude tasks of credit card debt consolidation, management of your income, account and mortgage as well. To assist you in your debt relief, States’ Attorneys General suggest some miraculous strategies. These strategies are important not only for your debt management but also in planning your financial future.

Foreclosure – foreclosure is taken as one of the most rude thing while facing the unfortunate problem of bankruptcy. In accordance wit the economic term of ‘foreclosing’, one has lost is every penny. If a person opt for foreclosing, bank seals all of is properties; this is almost like selling property on a very low value, which is adequate for nothing. This is supposed to be the saddest case. Are you also foreseeing such situation? You must get help of bankruptcy lawyers.

Mistreatment by creditors- It is observed that in most of cases, creditors become violent after a certain deadline when a person fails to repay is/her debt. Normally, creditors tend to harass the borrowers; they physically or mentally mistreat, which is entirely against the law. To avoid such situations and get debt relief, you can look towards your State’s Attorney General. His assistance will help you in avoiding all the maltreatment and getting a loan relinquishment as well. The laws should protect the borrower.

Relinquishment in Taxes- The economic slowdown is causing a couple of problems for you, as you are already facing severe loss and the credit-limit has surpassed the income limit. This problem is amalgamated with high rates of taxes. Nevertheless, you are already soaked in the big pool of debt but you have to pay your taxes at any cost. This is the perfect time when you must consult an attorney, because they can suggest you the best method to get the tax waiver.

Though, you are all set to cope with the issue of bankruptcy filings, you must take care of your accounts and avoid mismanagement of any financial gain. You must know to how tackle the situation before you are overloaded with debt.

Chuck R Stewart recently reviewed a Plano debt relief legal practice while preparing to write a paper on the subject of bankruptcy. He was very impressed with the quality of workmanship performed by the Plano bankruptcy lawyer at the same practice where he worked.

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