What Is Debt Negotiation and Settlement?

Debt Settlement and negotiation are terms loosely used to describe a process which can vary in many ways. The goal is simple: to get creditors to accept something different from the original bargain that benefits both you and them. It makes it more possible for you to dig your way out of debt difficulties, and it makes it more possible for them to maximize their return on a deal that has somehow gone bad. In other words, both parties have a problem – they recognize it and work together to solve it.

Of course this is very basic, but you must understand that the creditors are not doing this out of the goodness of their hearts, because you “need it,” or for any other altruistic reason. Likewise, they don’t do it because they can “afford it,” and you can’t afford to keep paying. Their job, which they never forget, is to make as much money for themselves as possible. You must remember that in your negotiations at all times.

Like most legal matters, negotiation is not much about the words you use. It’s the way you change the facts and the perception of them.

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