How to Negotiate Your Own Debt - Where Do I Get the Settlement Money?
Negotiating your own debt is the most cost effective way to get out of debt. I am living proof of this fact because I negotiated my own debt down to 22% of my balance owed. The major portion of the debt was negotiated down to 15% of debt owed and five months to pay! I don't know if this is common, however, I now know it is possible.
One of the most frequent questions I receive is "where do I get the money to pay off the settlement I just negotiated?" This is a great question and one that has several answers depending on your situation.
The first option is to borrow it from family members. I took advantage of this option to some degree. I was able to borrow a portion of the amount with the promise to pay back the balance within a year.
The second option, and one that is more common, involves stopping payments to all your creditors' immediately. This is necessary for two reasons. First, to enable you to negotiate your debt effectively you will have to be at least 90 to 180 days delinquent. During this time you should not pay any unsecured debt. Yes, the phone will ring but you will have to learn to live with it.
Second, you will put the money that you usually pay towards your unsecured debt in a savings account. This money can not be touched for any reason as this is what you will make the first offer of settlement with.
After this debt is settled then you start saving towards the next outstanding debt and repeat the process.
This will give you a stable base from which to work from and reduce and payoff your debt fast.
One of the most frequent questions I receive is "where do I get the money to pay off the settlement I just negotiated?" This is a great question and one that has several answers depending on your situation.
The first option is to borrow it from family members. I took advantage of this option to some degree. I was able to borrow a portion of the amount with the promise to pay back the balance within a year.
The second option, and one that is more common, involves stopping payments to all your creditors' immediately. This is necessary for two reasons. First, to enable you to negotiate your debt effectively you will have to be at least 90 to 180 days delinquent. During this time you should not pay any unsecured debt. Yes, the phone will ring but you will have to learn to live with it.
Second, you will put the money that you usually pay towards your unsecured debt in a savings account. This money can not be touched for any reason as this is what you will make the first offer of settlement with.
After this debt is settled then you start saving towards the next outstanding debt and repeat the process.
This will give you a stable base from which to work from and reduce and payoff your debt fast.
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