Eager to know about the method of negotiating with debt collectors? Well, you are at the right place. This article will try to help you know about the method of negotiating with debt collectors and you will learn the process of how to drive a hard bargain with your lenders! There are a few important things that you need to keep in mind before you actually go for a bargain. They are:
- You must have a minimum of $ 10k of unsecured debt.
- The debt needs to be consolidated in one place. This is required in order to ensure that the total amount never falls short of the amount mentioned above and that the total time and cost of negotiation can be reduced to the bare minimum.
- Finally, you must hire a professional negotiating agency. This is because of the fact that the professional negotiator knows better about the banking system and are actually equipped with enough knowledge to push the lenders hard to get the best deal for you.
Once you hire a professional debt settlement company, the professional negotiator from the company will advise you to go delinquent. This is because of the fact that the professional negotiator needs to prove that you are in a financial trouble. You need to follow the advice.
After you stop paying, the lender will wait for a period of 3-4 months and will then decide to sell off the debt to a collection agency. The rate at which the lender agreements the transaction is a mere 20-30 cents on the dollar, which means that the collection agency gives only 20-30 cents to the lender and retains the remaining for every dollar that it collects from you. The negotiator will keep a track of this and then contact the lender with a new offer of 30-50 cents on each dollar. The lender will also be threatened of bankruptcy by the negotiator.
The lender will never want you to file for bankruptcy because if you do so, the lender will lose the entire money. The lender will then agree to the deal on the basis of the fact that the new deal will mean 100% ROI for the collection agency which the lender has hired. The lender will then eliminate the debt that you have by at least 50% of the total due. This is how you need to drive a hard bargain with your lender!