When faced with a serious financial problem because of your ballooning debts, you may want to get hold of the fastest solution to your problem. Some of you may be considering the filing of bankruptcy, but you must be aware that this debt solution has a long-term effect on your credit record, and this can hinder your plans to become debt-free the soonest possible time. There are also individuals who bet on lottery hoping they’d hit the jackpot, but winning is just out of pure luck.
One of the most effective debt solutions that you can adopt is debt negotiation. In a debt negotiation, you will have a chance to lower the principal amount of your debt including the interest. Some people have succeeded in negotiating with their creditors, but there are those who have failed to convince their creditors to waive a certain percentage of their debts. Here are some ways to negotiate with your creditors and get a positive result:
1. Identify your debts that seem impossible for you to settle. There are debts that can be easily settled and there are those that can’t. You should have an idea what these are. Those that may be paid off easily are your credit card bills, hospital bills, previous utility bills, attorney’s fees and personal loans, while your debts that may already be hard on your pocket are housing and car loans, child support and student loans. By disintegrating your debts, it will be much easier for you outline your priorities and manage them.
2. Accumulate additional cash to settle your debts. If you are only depending on your monthly salary, it will really be hard for you to settle all your debts. You should think of other ways on how you can earn extra income. In case you’re already earning extra income, you can use it to settle your debts according to priority. You might also need to seek the help of a debt negotiation expert. He or she can give you some advices on how you can earn additional money. Maybe you will be advised to sell some of your properties or get a loan.
3. Get the services of a debt negotiator. Debt negotiation involves several steps and processes. If you are not familiar with them, it would be good idea to ask assistance from a reliable debt negotiator. A debt negotiator will have to evaluate your finances and then identify the best debt solution. It is important that your debt negotiator is upright. Otherwise, he or she will just take advantage of your situation.