A Comprehensive Guide to Debt Consolidation

The good thing about business is that there is always room for negotiations. The only thing you need to know is when who, and how to table your discount request. One of the many times that many people and businesses find the need to negotiate is when they are lagging behind in the payment of debt. This necessitates finding favor in the face of your creditor to have your debt forgiven in part. However, you will need to be informed first, and this piece can help with that.

The basics

Debt consolidation is about getting your creditor to agree to terms that will allow you to pay lower than the outstanding amount of the debt. The agreement may vary from reducing the rate of interest to paying a one-time lump-sum in return for scrapping the remaining debt. The choice of the option that the creditor will go with will mainly depend on your negotiations.

To be eligible for such privileges, the credit card issuer will require proof that you are in a financial state in which you are unable to settle the remaining debt and are heading towards bankruptcy. Also, they may consider opting for this approach of settling the debt if they are going under. Whichever the case, it is the creditor trying to cushion its financial bottom line. And understanding this factor can go a long way in helping you do well at the negotiations.

Attempting negotiations

Once you have decided to go for creditors relief by choosing debt settlement, the manner in which you handle everything from the start will affect your success. The first thing to think about is whether you want to hire a professional, either a lawyer or a debt settlement company, to handle the negotiations or you want to do it yourself. It is important to weigh the options before settling on one.

Hiring a debt consolidating company is the option that many people go for, maybe for the experience of the experts there and better grounds for negotiations. Bear in mind that law does not allow for them to charge you any upfront fees. Most companies charge a percentage of either the total debt or the part of the debt forgiven. For a debt settlement lawyer, you may be billed hourly or using percentages. Just make sure that you agree to their terms first.


If you know what is required of you to get a hearing from your creditor, then you can consider doing the negotiations yourself. Preparations may include having your documents including communications and your past payments. Honesty is one other thing you need to uphold if you are to get any favor from your credit card issuer.


While getting a yes for your request is the most desired response, you should know that that will not always be the case. And in the unfortunate instance that they don't agree to your request, be sure to ask for better repayment terms including lower APR from your credit company.

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