|
 |
|  |   Will Debt Negotiation Work For Me?At Debt Consolidation Advisors, we are the first to admit that the debt negotiation strategy doesn't work for everybody. But, for those who do qualify, it's a no-nonsense financial recovery program that makes great sense.But should you consider it, or instead consider credit counseling (which we also offer)? The questions below will help you decide whether you should consider debt negotiation, or credit counseling. 1. Do you have what could be called a legitimate financial hardship condition? What this usually means is have you experienced loss of income, a medical condition, the death of a family member, the loss of child support payments, divorce or separation or some other serious event that caused a severe financial setback. The event doesn't always have to be considerably drastic, but there should be an identifiable circumstance (or set of circumstances) that got you into trouble. 2. Are you really committed to avoiding bankruptcy? It's a fact - just about every debtor who has gotten behind on payments and tries to negotiate with a bank threatens to claim bankruptcy. A truly effective debt negotiation strategy, however, takes the opposite position, by promising that bankruptcy will not be filed if the bank or creditor agrees to a workable arrangement. This promise is absolutely essential to the debt negotiation process. 3. Do you owe more than $10,000 in unsecured debt? If you answered no, then debt negotiation is probably not your solution. You may want to apply for our credit counseling service here. However, some discounts and favorable arrangements may still be possible, but frankly, really major debt reductions are going to be very tough to get. Our typical debt negotiation clients generally have debt ranging anywhere from $20,000 to $50,000, although there is no fixed rule. The exact nature of the debt also comes into the total picture. 4. Is your debt total primarily made up of credit card debt? The negotiation strategy described on this site works well for a variety of debts, but the best results are obtained from credit card debt. The steepest discounts and greatest rate reductions can be obtained with credit card accounts. Although department store charge cards, financing contracts and miscellaneous other bills can also be negotiated, but the results are less predictable. Medical bills are often negotiable as well, and usually with stellar results. Unfortunately, many student loans are NOT negotiable, simply because these are federal government loans, and the government can easily hold back your tax refund. Auto loans and mortgages can generally be refinanced, but of course, the full value of the debt will still be in place. 5. Can your monthly budget handle it? Unfortunately, all the best intentions in the world will not help if you don't have anything to offer your creditors. A good rule of thumb we like to give our clients is that their budget should be about $150-200 for every $10,000 of debt they hold. If, for example, you owe $40,000 in total, your monthly budget should be in the neighborhood of $600-800. 6. Do you have any other resources you can obtain money from? Even if your budget cannot handle a small monthly payment toward your debt reduction program, are there other resources at hand? Examples might include cash-value insurance policies, borrowing from your family, or even the sale of items you may not need? Do you have other property you could sell to raise capital? If you are in a condition of financial hardship and are committed to avoiding bankruptcy, you should definitely give serious consideration to the debt negotiation strategy. Contact us here for a free consultation. |  |
|
Copyright 2001-2007 Debt Consolidation Advisors. Privacy Policy All Rights Reserved. |
Debt Solutions