Of course the financial crisis has taken a heavy toll on more individuals like you and I, than banks.

If you are overwhelmed with debt, but don’t want to go down the road to bankruptcy, you may be a candidate for debt negotiation, which is a process of negotiating with a creditor to pay off a percentage of a balance owed on old bills, invoices, lawsuits, liens, medical bills, utility bills, and judgments.

Debt negotiation is often in the best interest of creditors who have debtors experiencing hardship.

Would your personal financial situation benefit from a professional debt negotiator? Your financial circumstances could result in only being required to pay less than 50% of what your current unsecured bills are demanding.

To find out more, click “Contact” and find out for yourself.

Is Debt Counseling for You?

The notion of “counseling” for debt problems sounds reasonable. But that’s what it’s supposed to do: “Sound reasonable.”

Participating in credit or debt counseling is somewhat like filing for a type of bankruptcy (Chapter 13).

What happens is that the debt “counseling” agency will help you come up with a plan to pay back your creditors over time, somewhat like a Chapter 13 plan. The good news is that such counseling has one advantage over formal bankruptcy: No bankruptcy will actually appear on your credit record.

However, a debt “counseling” (or debt management) program has some important disadvantages, when compared to Chapter 13 bankruptcy.

Disadvantage Number 1: If you miss a payment, Chapter 13 bankruptcy protects you from creditors who would start collection actions. However, a debt “counseling” (or debt management) program has no such protection.

In other words, if you miss a payment, any one creditor can pull the plug on your plan (and it’s in their best interest to do so).

Disadvantage Number 2: Debt “counseling” (or debt management), usually requires you to repay your debts in full. In Chapter 13 bankruptcy, you typically pay only a small fraction of your unsecured debts.

Disadvantage Number 3: In a blatant conflict of interest, these debt “counseling” (or debt management) agencies receive most of their funding from the creditors themselves. (If you were being paid by a credit card company to help people with credit card debt – who are you actually working for?)

Negotiate With Your Creditors

Debt negotiation is distinctly different than debt counseling. In fact, it’s NOT what creditors want you to know about or do. Debt counselors will counsel you against such a practice (since they are paid by the creditors).

Negotiation your debt with your creditors can buy you some time to get back on your feet. On top of that, your creditors may agree to settle your debts for less than you owe. If you have some income, or you have assets you’re willing to sell, you may be a lot better off negotiating with your creditors than filing for bankruptcy.

However, many people aren’t comfortable negotiating with their creditors or with collection agencies and rightfully so, since those collectors are trained to NOT give you what the law outlines in your circumstances. Furthermore, even if you are a confident and able negotiator, the creditors and collectors are so hard-nosed that the process is too unpleasant for most people to want to contend with.

A better solution is to use a professional debt negotiation service. These agencies can work with you to help you repay your debts and improve your financial picture. Since they understand the laws as well as the games, strategies and limits of the creditors, they are able to negotiate considerably lower repayment rates than you could on your own. What that means is that you end up paying a fraction of the unsecured debt (especially from credit cards) that you owe to completely satisfy the debt.

For more information on professional debt negotiation services and for a free debt consultation, click “Contact” to email or call a professional service today and find out what they can do for you.

Don’t let creditors take advantage of you.

EFS negotiates with your creditors, on your behalf, to establish an amount that you CAN afford, which results in portions of the debt becoming eliminated by the creditors.

As a BONUS, because EFS will work directly with your creditors, you are able to get on with your life, without the hassle of creditors calling you.

What types of debt can be negotiated to obtain debt settlements?

♦ Credit Cards
♦ Store Cards
♦ Unsecured Bank Loans
♦ Personal Loans

Non Qualified Debt

♦ Student Loans
♦ Mortgage Loans
♦ Car Loans
♦ Taxes
♦ Less than $10,000 total

Click Contact EFS for a free consultation on how to eliminate your debt stress today!

Commonly, you and I use debt to purchase houses, cars and many other things too expensive to purchase from our personal savings.

Companies use debt to leverage investment and productivity.

However, for both companies and individuals, the increased risk of assuming too much debt can lead to poor results, as the cost of paying the interest on the debt can grow beyond the ability to pay it, especially if income loss, bad management, economic factors, emergencies or any other financial difficulties.

Note, however, that in these examples debt has been used frivolously.

If you have extended your debt capacity, you can take advantage of debt negotiation services to get your current debt load under control. However, unless you are a bank or a government – who seem to be able to get away with irresponsible use of debt – you will need to ensure that you more carefully manage your debt in the future.

I would strongly suggest that you find a Debt Negotiation company that lets you pay the Negotiator on how good they do their job.

The industry standard is to pay the Negotiator 25% of what they save.  (There are companies that charge 15% of the savings, but I notice they don’t stay in business long.)

What you are doing is paying the Negotiator more money when he does a better job.  When he does a good job, you end up saving more.  I know, that sounds like a play on words, but here’s the example that will make sense:

SETTLEMENT DONE BY THE NEGOTIATOR

You have a $1000 debt and the negotiator settles it for $500.  That means, the bank or credit card company will take $500 and call it even.  You save $500 and 25% of that is $125 for the Negotiator.  The total amount you spend on this settlement is $625.

Let’s say the Negotiator does better.  He settles the debt with the bank or credit card company for $400.  He saves you $600 and 25% of that is $150.  The Negotiator makes more money!  However, when you add the $400 to the bank and the $150 for the Negotiator, you pay $550.

So, the more you pay the Negotiator, the less money you spend overall on that debt.

That type of fee is called Performance Based Fee because it is based on how well the Negotiator does his job.

You also don’t have to pay the Negotiator if he doesn’t settle one of your accounts.  There are some companies out there that have you pay their fee in full whether or not they end up making a settlement on any one of your creditors.  hat’s another good reason to pay the Negotiator as he does his job.

The point here is that negotiating debt has been around for as long as man. 

DEBT NEGOTIATION WHAT TO LOOK!

In the Debt Negotiation (Debt Settlement, same thing) industry, the average settlement is 43 to 45%, period.  There is no one that does better than that.  I’ve been in the debt negotiation business for 10 years and it has always been 43 to 45%.  My business mentor has been negotiating debt for 20 years and the settlement amounts have always been 43 to 45%. 

So, first off, don’t listen to some sales guy tell you that they will do 30 or 35% across the boards.  That just isn’t going to happen unless the person has 1 account and it’s a Chase account. 

DEBT NEGOTIATION FEES!

Next, on the Fees paid to the Debt Negotiation Company: My advice, don’t pay all of your fees to the company over 6 to 18 months.  

What I have seen many times is that a Debt Negotiation company will have you pay them their fees each month, whether or not they have settled any account.  

They do this by having you pay their fee each month on a decreasing basis until you have fully paid their fees.  For instance, if you pay $600 a month to the company to get out of debt, they will take their fees out of that $600, starting in the first 3 months at the full $600 amount, then graduate it down so each month the amount that goes to them is less and less until it is all paid off.  So, on your payment of $600 for the 4^th month, they might have $350 come to them and $250 get set aside for settlements with your creditor.  After the Debt Negotiation Company’s fees are fully paid, all of your $600 will go towards settlements. 

If that is understandable, here is the problem.  If a contractor came to your house to remodel your kitchen, you would NEVER just write him a check that fully paid for his quote. 

You would give him some money and as he finished different parts of the kitchen, you would pay him more.  This would continue until he had the whole project finished. 

You would NEVER pay the contractor in full before he started the project for 2 reasons: 

1. He loses his incentive.
2. You lose your leverage. 

You want him to work for you and give you the best job.  If you don’t like what he has done, you can hold back his payment until he gets it right. 

Why would you want to pay a Debt Negotiation Company all of their fees over several months when they haven’t gotten you completely out of debt? 

If you do that, you lose your leverage and they lose their incentive no matter what they tell you before you sign up.  It’s just a natural law. 

DEBT SETTLEMENT FEES

Make sure you pay the company’s settlement fees WHEN THEY MAKE THE SETTLEMENT AND YOU APPROVE THE SETTLEMENT. 

That puts you in the driver’s seat and they are working for you!  

I have been in the Debt Settlement industry for 10 years and I have heard the worries that people have about their credit when they can hardly pay their debt.

There are a couple of things that stand out about someone worried about their credit:

1. They don’t really know what their credit score is.
2. They don’t know what their score even means.
3. They think their credit score will just get better if they keep making their minimum payments.
4. They don’t understand that their income to debt ratio is so bad that no bank or lender would give them a loan.

Let’s look at it like this. When you go to bed at night, do you worry about your credit score or how the hell you’re going to get out of your debt?

My bet is, you’re looking at the ceiling late at night worried about paying your credit cards.

WHO  REALLY CARES ABOUT YOUR CREDIT?

The credit card companies, of course! They want to remind you that if you don’t pay your credit cards on time, you will have bad credit for 7 to 10 years!

But wait, have any of these creditors really looked at what they are saying?

No!

Because what they are saying is that if you don’t continue to pay your debt at minimum payments for the next 30+ years, you will have bad credit for 7 to 10 years.

Now wait, if I pay my credit cards for 30+ years and pay back 3 to 4 times what I initially borrowed, I will be able to avoid bad credit for 7 to 10 years?

See, it just doesn’t make any sense. Bad credit can go away in 7 to 10 years, but credit card debt won’t go away for 30+ years if you can only make minimum payments!

Debt Settlement, or Debt Negotiation (same thing) can get you out of debt on the average of 3 years and you spend less than you currently owe in unsecured debt.

How does that happen?

Investigate more about Debt Settlement or Debt Negotiation by adding your name and email below and clicking SUBMIT! Over the next week you’ll receive a series of email training messages designed to help you sort out the best solution to your debt stress.

Debt Negotiation is the process of negotiating with a creditor to pay off a percentage of a balance owed on old bills, invoices, lawsuits, liens, medical bills, utility bills, and judgments.

This process is commonly used in debt settlement and debt arbitration.

Since a significant amount of bankruptcies that are filed by individuals and businesses occur as a result of “current” debt obligations, it is often in the creditors best interest to negotiate debt repayment to regain a portion of the money due, instead of the potential of getting nothing after a debtor files bankruptcy.

As well, since credit card companies charge such a large amount of interest and fees when debtors fall behind on their payments, the credit card companies are merely negotiating away unearned profit, as opposed to the original capital.