In business everything can be negotiated. That is the good thing about it. Getting discount can be easy if an individual is aware of the right person to approach and the right way to approach. When investments are made by business owners, they often come under circumstances where they need to take loans or credit from financial institutions. However, owing the balance a person owes on her credit cardsbecomes an issue when the investment made falls through and the person concerned has to file for bankruptcy.
In such cases you can approach a debt settlementcompany that can help you in reducing the amount of money you have to pay back to the financial institution. With the correct technique you can get the needful without having to dole out an amount of money that might make you a pauper.
Debt Settlement-an Idea
When you invest money on something and pay on credit, you get what you want but your credit balance keeps increasing. When that balance comes to a huge amount you might not be in a position to return it back in full. Under such circumstances, you can opt for a process that causes you to pay a one-time payment in exchange of being forgiven for the remaining amount. For example, you owe an amount of $15,000 on a single credit card. Given your financial condition you will not be able to repay the entire amount. You can offer a one-time payment of $10,000. In exchange for the one-time payment, the credit card issuing will be ready to forego the remaining amount of $5000. This process is called debt settlement.
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Why will the Credit Card Issuer Agree?
What is important here is that the credit card company is ready to forego the remaining amount of money it had given to you on credit. This is because they are afraid that you might not ever be able to repay the entire amount you had borrowed for investing. The company issuing the credit card actually tries to save its own financial position.
In most cases, when you take a loan for investing on something, there is collateral. If you cannot repay the money, the bank can seize some of your property. However in case of a credit card company, this is not the case. Since, credit cards provide unsecured loans;the credit card issuer cannot seize any asset to recover the unpaid credit.
But, credit card companies agree for debt relief only if they are assured that you are heading for bankruptcy.
Debt Settlement- the Technique
The first and foremost thing that you and your debt reliefspecialist have to keep in mind is that the credit card issuing company should realize that in you are in no position to pay them back. They should believe that fact that rejecting your offer of one-time payment can be a loss for them.
If the managerin the debt settlement department of the credit card company sees that you had invested on expensive dresses and luxurious vacations on the last six months, she will not grant you the settlement.
A debt relief specialist will help you in conveying the fact that you are in dire situations and would like to pay a part of the debt you owe them. You have to maintain that you have collected some money and want to pay it to them before you pay it off to someone else. Once the credit card company agrees to the deal, your debt settlement specialist will make sure that you get it signed by the former.
Thus, it can be concluded that settling debt with the help of a specialist makes things easier as they are equipped with right kind of attitudeto get your debt settled.