Selecting A Debt Settlement Strategy – Tips To Negotiate A Successful Debt Settlement Deal

Selecting A Debt Settlement Strategy – Tips To Negotiate A Successful Debt Settlement Deal

The new Laws by Federal Trade Commission have provided both the debtors and the credit providing companies some relief. Now the debt which otherwise would have not been paid can be settled between both the parties. FTC Laws are accepted by both the parties, the debtors and the debt providers, as it have dropped the number of bankruptcy cases. The debt provider companies gain under new FTC rules as they now get a chance to recover at least some of the unpaid debt. Whereas, the debt defaulters are also satisfied with these new laws as they now get a chance to clear their unpaid debt and avoid bankruptcy. But, the success of a settlement depends upon a successful Debt Settlement Deal. Below are few tips to negotiate a successful settlement deal:

• The basic thing is to check the reliability of the Debt Settlement Company which plays a vital role in making the debt settlement deal successful. Reliability of such company can be checked on various parameters like their track record, listing of the company, honesty and successful cases.
• Financial settlement is an alternative to filing bankruptcy, and is at any time better option than being declared bankrupt. So, the debt settlement deal can be made according to the financial ability to repay the huge debt which was earlier not possible to pay.
• Legal awareness is also an important thing to be considered while considering for a successful debt settlement deal. This is because as per new FTC laws upfront payment is not allowed to be made by the customer. Awareness of such laws helps to safeguard the chances of fraud.
• There are various debt settlement companies advertising a lot and mentioning some lucrative offers which are not easy to believe and quite confusing at times. Such companies should be avoided or the validation of their advertisement should be accordingly cross checked.
• The fees to be paid to the debt settlement companies should also be checked because as per the industry norms a professional fee of ten percent to twenty percent of the debt is charged to settle it to fifty percent or more. Companies asking more than should be avoided or properly negotiated to get a successful Settlement Deal.

Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options. For a free consultation from a debt relief specialist in your area check out the following link:

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