Bill Consolidation

Although it can be a challenge, the settling of debt can help to alleviate your financial stress from calls from collectors and collection notices. In addition, it will save you money and time as well as allow you to begin slowly improving your score. The following steps will help you to accomplish just this:

1. Collect any required account information such as collection notices, creditor phone numbers, balances, and account numbers. The first thing you need to do is determine whether you are settlement-eligible. The account cannot be secured and must be past due, usually about six months.

2. Evaluate how much you can afford for your settlement. Determine this in both a lump sum as well as possible monthly payments.

3. After you have determined what amount you can pay, determine the percentage that you are willing to offer. Offer low first and then enter into negotiations with the creditor.

4. Call your creditor and inform your representative that you require the help of a settlement negotiator.

5. If the account is not indicated as “bad debt” on your report and you are offered 50% or lower, it is probably best to not take this offer as it is not the best deal.

6. If you have an account that is “charged off”, you are likely to obtain lower settlements so keep pushing for this.

7. If your account is close to being “charged off”, you should attempt to find a 50% of lower percentage as this is often the last chance for the creditor to collect your money prior to selling your debt to another company.

8. Once you have begun negotiating with a settlement negotiator, you should inform them that you are having financial difficulties and then provide them with your plan for paying of any debt.

9. After you have offered an amount, the creditor will likely inform you that they are unable to settle or they will for a higher amount. It is then that you should describe your financial problems and the cause for them as well as the fact that you do not have extensive funds. Typically, they will then provide you with a lower offer.

10. The negotiation process continues like this. You should make continuous offers until you find one that you are able to accept. Take advantage of the fact that they are not able to hang up on you so you can negotiate for as long as required.

11. After an agreement has been reached, request that the settlement information be sent in a letter to your home to be verified.

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