Often, lenders use collection agencies to collect your debt. These agencies use a variety of different techniques to enforce the payment of creditors' bill, however, the Fair Debt Collection Practices Act (FDCPA) regulating collection agencies. The rule FDCPA time, form and content of the collection agencies to be used for debt payment. Toprotected from harassment by collection agencies, all a borrower needs to do is write a letter to the collection agency asking them not to contact him again. After receiving this letter that the agency can only contact the debtor to inform legal actions can be taken against him.
However, if you resolve the debt with an agreement then you are better in touch with the creditor or collectionagency yourself. Note that creditors are only interested in being paid. I am fully aware that there are few assets that can take you to repay the debt. In negotiating with creditors, inform them that its the only other option is bankruptcy and is willing to pay a percentage of the debt. This percentage should be about 10% more than the creditor would go bankrupt. Try to get even that no or very little interest on that amount,if you are paid through payments, the creditor can remember that no interest rate on failure.
Negotiating with the lender, the lender will also ask you to remove any negative comments that could have come with the credit bureau, this will keep your credit report damage. If the creditor refuses to negotiate to increase the amount to be paid 5% increments. However, patience is the key in the settlements, not to accept the first, second, or eventhird offer, push for your interest and remember that you have the advantage.
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