Consumer Debt Negotiation

Debts To Settle

Generally speaking, it is possible for almost all unsecured debts to be negotiated under the proper circumstances. An unsecured debt means there was no collateral involved in getting the loan, things like medical bills or credit card bills for example. An example of a secured debt would be things such as automotive loans or a mortgage, in which the debt is held against collateral.

Here are some good examples of debt that are often settled for less:

  • Student loans
  • High-interest credit cards
  • Unsecured personal loans
  • Collection agency debts
  • Medical and legal bills
  • Old service bills (utilities, etc)
  • Department store credit cards

The specific settlement terms can change immensely depending on the debtors circumstances and the nature of the money owed.

Creditors are not required to accept debt settlement proposals from consumers. It is more common for creditors to consider negotiations when they are concerned about the debtor going bankrupt, in which receiving anything direct from the debtor is still preferable to what they will receive from a bankruptcy settlement.

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