Debt Consolidation Loan Alternatives

Debt Renegotiation Explained

Let's go over the negotiation process in a little more detail. When you become a client of a professional debt negotiator, he or she will impose two simple rules for you to follow:

Rule No. 1: Don't talk to your creditors.
Rule No. 2: Don't send your creditors any money.

Do you think you can handle those rules? They're tough, aren't they? You'd be surprised though. Some clients just can't deal with it. They are so accustomed to sending out those minimum payments every month, even though it's literally killing them financially, that they can't handle Rule No. 2.

Here's exactly why these rules are so important:

Rule No. 1 is important because only one person can negotiate your debts for you. If you only allow the negotiator to handle some of the phone calls while you make other calls yourself, the odds are high that you will say something that is not in your best interests, thereby undermining your negotiator.

You've seen the cop shows on TV, where they always read a suspect his or her rights while they're being arrested. "You have the right to remain silent," and so forth. Well, in debt collection, there is a similar rule. A debt collector is supposed to tell you the following: "This is an attempt to collect a debt. Any information you give us will be used for that purpose."

Your debt negotiator knows exactly what information to disclose, when to disclose it, and when to withhold information. The average person, on the other hand, has no idea what to say in this particular situation. We tend to respect authority. Collectors have a lot of nerve and present themselves authoritatively. They ask you where you work, how much you make, how much you pay in rent every month, and so on. The answers, quite frankly, are none of their business. But most people feel compelled to answer, in a misguided attempt to establish rapport with the collector. So, the first rule is KEEP QUIET, and let your negotiator do the talking.

Rule No. 2 is even more basic. Don't send good money chasing after bad. If you've been making endless minimum payments and not getting anywhere in the process, it's time to STOP. Why waste more money?

DISCLAIMER: It's important that you understand us plainly here. I'm not advocating that everybody suddenly quit paying bills. If you have sufficient income to reduce your debt load the ordinary way (by reducing the balances with payments in excess of the minimums), an ethical debt negotiator will not take your case anyway.

The negotiation process works best in the event of
LEGITIMATE FINANCIAL HARDSHIP.

So Rule No. 2 applies to the person who is suffering a legitimate hardship, one who will experience serious difficulties, such as home eviction or car repossession, if they continue trying to keep up with their endless credit card payments.

Read on: Will This Strategy Work For Me?