If you're struggling under a mountain of debt, you might be able to work with creditors—and even debt collectors—to make things more manageable. This process is often called "debt settlement" or "debt negotiation." For example, you might settle a debt by getting the creditor to accept a lower amount if you pay an up-front lump sum. Or perhaps you can negotiate lower payments, either temporarily or permanently. Before you contact the creditor or collector, figure out your goals and pick a few negotiation strategies. Below, you'll find articles to help you through the process.
Also, if you want help in dealing with your creditors, the articles in this section provide information on how to get reliable help and what to avoid, like debt negotiation firms.
Avoid these common pitfalls when you are negotiating with creditors to reduce debt.
The IRS may count a debt written off or settled by your creditor astaxable income.
With the right negotiation strategies, you might be able to reduce your debt.
Learn about the advantages and disadvantages of debt consolidation and bankruptcy for dealing with debts.
Making a partial payment to a creditor usually doesn't stave off collection, and it might hurt.
Learn about the upsides and downsides to debt management plans and get information about how to steer clear of related scams.
Take steps to reduce, eliminate, or better manage your high medical bills.
If you have high credit card debt, you might be able to settle the debt for less than the full amount. But beware of the downsides to credit card debt settlement.
Debt buyers purchase debts in bulk and then try to collect them. Learn how to deal with a debt buyer.
Learn about the upsides and downsides to debt management plans and get information about how to steer clear of related scams.
Learn about debt relief services and why you should probably avoid them.
Here are some options when negotiating settlement of an unsecured debt with a collection agency.
If you're ready to negotiate on a debt, you will probably be better off talking to the creditor, not a collection agency.
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At Nolo, we prioritize quality and transparency because we know how important reliable legal information is to our readers. Our information is meticulously researched, regularly updated, and written in plain English by our experienced writers and editors. Learn more about our editorial standards.