Let us create a 3D eBook for you!
Let us create a 3d Digital eBook for you! DigyCat.com

Is Debt Negotiation Bad?


Educating yourself about the ins and outs of debt negotiation is a good first step. Please note that the term 'debt negotiation' is also known as debt arbitration or debt settlement.

For starters, a lender has little motivation to arbitrate anything less than the full amount unless the person is two to three months behind in payment.

To answer your question is debt negotiation bad? You need view it as a last-resort measure. The truth of the matter is it's one step away from declaring bankruptcy.

Remember, your lender gave you the money or property in good faith. He or she has every right to expect that the loan be repaid in full. Morally, you should do everything that is within your power to pay your debt(s).

However, this is not always possible and despite how much you would like to repay the loan in full you just can't - not now and not in the foreseeable future. This is where debt negotiation comes into play. It may be your only logical course of action.

And, in the case of an old debt that you've long since forgotten about, debt negotiation would be the best way of dealing with it. There's no point in keeping a small blemish on report when a little negotiation can easily turn things around.

But if you find yourself overwhelmed with your current debt load, credit counselling should instead be your first action step. A credit counsellor will give you some tools and suggestions for reducing your payments.

Debt consolidation may be more appropriate. A credit counsellor will walk you through the debt consolidation process. In a nutshell, it means creating a whole new loan for a longer period of time. This would hopefully lower your payments enough so you can get back on track.

Please know however, that debt consolidation can be nothing more than a way of putting off the evitable. It really does little to correct the problem. That's why many people come back to debt negotiation as a way of getting out of their financial problems and starting fresh start.

If you're determined to pay of your debt(s) and turn over a new 'financial' leaf you may wish to contact your creditors yourself. By doing so, you may be able to negotiate a lower interest rate or a more realistic repayment plan. This is known as self arbitration.

So, is debt negotiation bad if you really need it? The bottom line answer is no. When your debt is very delinquent, negotiation is often in your best interest. If this is the case, now is the time to either consider self arbitration or seek out the help of a debt negotiation company.

Although a debt negotiation program will lower your credit score for as long a you're in the program, you'll also find that most debt negotiation companies require the creditor to make sure that the final credit report reflects the account is now paid in full. Therefore, once your account is settled you will no longer have a negative report.

A number of debt negotiation companies also include a credit repair service as part of their debt negotiation program. This repair service removes any negative items caused by the program. Although it is part of the program there are additional fees associated with this service.

Is debt negotiation bad? Ultimately, you're the best person to judge whether debt negotiation is right for you or if it's in your best interest to consider another alternative such as debt consolidation.

This is where negotiation and your question, "Is debt negotiation bad?" comes in. Debt negotiation is bad in that it means the complete destruction of your credit history.

Paul Jesse is a retired government employee and author of numerous home business and financial articles. http://www.sheamarketing.com/student-loan-debt-consolidaion


MORE RESOURCES:

Debt Releif - Google News

This RSS feed URL is deprecated

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Law Firms Should Provide Student Loan Assistance To Their Associates - Above the Law


Above the Law

Law Firms Should Provide Student Loan Assistance To Their Associates
Above the Law
The idea of employers offering student debt relief is not new. Indeed, I have read numerous articles about financial services companies offering programs through which employers can provide student debt relief. It seems obvious that law firms would ...

Sudan: Debt Relief Still Not Forthcoming Says Finance Minister - AllAfrica.com


Sudan: Debt Relief Still Not Forthcoming Says Finance Minister
AllAfrica.com
He, however, regretted the fact that despite the implementation of a series of reforms by the government of Sudan including 13 Staff Monitored Programs and the Interim Poverty Reduction Strategy Paper for two years; the establishment of debt scenarios ...

and more »

What is debt settlement? - KTNV Las Vegas


KTNV Las Vegas

What is debt settlement?
KTNV Las Vegas
The other two are debt consolidation and bankruptcy. Debt settlement is when a debtor and a creditor agree on a reduced amount to negotiate the original amount owed. This may sound like the ideal solution for anyone stuck in debt and, in some cases, it ...

and more »

Congo seeks relief talks with oil traders over $2 bln debt - Nasdaq


Nasdaq

Congo seeks relief talks with oil traders over $2 bln debt
Nasdaq
LONDON, Feb 20 (Reuters) - Congo Republic is set to become the latest African country to start debt relief talks with trading houses after borrowing $2 billion from merchants such as Trafigura and Glencore but now finding its debt levels unsustainable ...
The Congo to start debt- relief talks after borrowing $2bn Business Day
Congo seeks relief talks with oil traders over $2 bln debt | - Kitco Kitco News
Congo seeks relief talks with oil traders over $2bn debt Creamer Media's Mining Weekly

all 1 news articles »

Congo seeks relief talks with oil traders over $2 bln debt - Reuters - Reuters


Congo seeks relief talks with oil traders over $2 bln debt - Reuters
Reuters
Congo Republic is set to becomethe latest African country to start debt relief talks withtrading houses after borrowing $2 billion from merchants such asTrafigura and Glencore but now finding its debt levelsunsustainable, sources familiar with the ...

and more »

Falmouth Receives Major Debt Relief on Turbine Cost - CapeCod.com News


CapeCod.com News

Falmouth Receives Major Debt Relief on Turbine Cost
CapeCod.com News
“The Board of Selectmen voted to enter into an agreement which reduces the obligation from about $1.5 million to about $178,000,” she said. Had the town not received the relief, it would have had to pay $110,000 a year for the next 15 years. The ...

Debt relief still not forthcoming says Sudan finance minister - East African Business Week


Debt relief still not forthcoming says Sudan finance minister
East African Business Week
KHARTOUM, Sudan, the Minister of Finance and Economic Planning, Mohamed Osman Suleiman Elrekabi , the Spokesperson for the EDs, Bright Erakpoweri Okogu , African Development Bank.

and more »

Greece's welcome debt upgrade fails to end concerns over its long-term economic health - CNBC


CNBC

Greece's welcome debt upgrade fails to end concerns over its long-term economic health
CNBC
"However, the medium-term fundamental situation remains problematic," he said, "without significant debt relief measures, such as the ones recommended by the IMF (International Monetary Fund), the Greek debt level would most likely remain at (an ...
UPDATE 3-Ratings upgrade lifts Greek debt, Italy succumbs to pre-election nerves Reuters

all 56 news articles »

Debt relief company returns money to FTC, refund checks in the mail - KOMO News


KOMO News

Debt relief company returns money to FTC, refund checks in the mail
KOMO News
If your credit card debt is out- pacing your ability to keep up with payments, reputable credit counseling advocates say debt relief companies should be your last resort. "People jump right into the first solution that looks like it's best for them ...

LargeFriends.com - the best dating site for plus-sized singles!
SuccessfulMatchCentral.com - the best dating site for plus-sized singles!

PreLaunchX

PrimeNews Domain Is For Sale - $5,000 For Enquiries eMail Us

© www.PrimeNews.biz - 2012

home | site map | links