3 Main Debt Settlement Strategies You Must Know

If you are thinking of going for debt settlement, then you have found the right article. In this article I have highlighted three main strategies for debt settlement. If you search on internet you will find several articles related to debt and some are so confusing and hard to understand. Even some comments are misleading.

Strategy No.1 - Select the Right Timing

I think 3 to 6 months is the best time for the debtor to negotiate. It is most likely to find that the creditors dont take the risk of settling the debtors' outstanding balances until they have fallen behind on their payments for more than 3 months. Its very obvious that creditor have fear that they might fail to get back the amount from the debtor if 6 months month passes. And one more point i would like to mention is that generally the creditors write off the debts or sell the debtors' accounts to the debt collection agents after 6 months.

Strategy No. 2 - Debt Settlement Letter & Agreement

Debtors should always approach their creditors and put their request in words. This is seriously helpful just because those wriiten documents serves at the proof in case of any dispute. After the settlement proposal is accepted, the creditors will provide the debtor with a written agreement before payment is made by the debtors.

Strategy No. 3 - Understand the Fair Debt Collection Act

It is very important for all the debtors to be aware of the law. This is a must inorder to avoid untrue claim and also will be protected from unfair treatments.