Debt Settlement & Negotiating With Creditors
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.
Overview Articles
Overview Articles
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Debt Negotiations: Common Mistakes
Avoid these common pitfalls when you are negotiating with creditors to reduce debt.
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Tax Consequences When a Creditor Writes Off or Settles a Debt
The IRS may count a debt written off or settled by your creditor astaxable income.
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Strategies for Negotiating With Creditors
With the right negotiation strategies, you might be able to reduce your debt.
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Debt Consolidation v. Bankruptcy
Learn about the advantages and disadvantages of debt consolidation and bankruptcy for dealing with debts.
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Should I Make a "Good Faith" Payment to a Creditor?
Making a partial payment to a creditor usually doesn't stave off collection, and it might hurt.
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Pros and Cons of Debt Management Plans
Learn about the upsides and downsides to debt management plans and get information about how to steer clear of related scams.
Negotiating Particular Debts
Negotiating Particular Debts
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Seeking Financial Assistance For Your Medical Bills
Take steps to reduce, eliminate, or better manage your high medical bills.
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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.
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Debt Buyers and How to Negotiate With Them
Debt buyers purchase debts in bulk and then try to collect them. Learn how to deal with a debt buyer.
Options to Avoid
Options to Avoid
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Pros and Cons of Debt Management Plans
Learn about the upsides and downsides to debt management plans and get information about how to steer clear of related scams.
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Beware of Debt Relief Services
Learn about debt relief services, regulations affecting these types of services, why you should generally avoid them, and alternatives to using a debt relief company.
Working With Collection Agencies
Working With Collection Agencies
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Negotiating With Collectors on Unsecured Debts
Here are some options when negotiating settlement of an unsecured debt with a collection agency.
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A collection agency has my debt. Can I negotiate with the original creditor?
If you're ready to negotiate on a debt, you will probably be better off talking to the creditor, not a collection agency.
More Legal Topics
- Car Repossessions
- Creditor Lawsuits
- Credit Repair for Bad Credit
- Dealing With Debt: When You Can't Pay Your Bills
- Debt Collectors, Collection Agencies & Debt Buyers
- Debt Relief & Consumer Lawyers
- Getting Loans & Credit
- How Creditors Collect Debts: Repossession, Wage Garnishment, Bank Attachment, and More
- Managing Credit Card Debt
- State Debt Management Centers
- Student Loan Debt
- Car Repossessions
- Creditor Lawsuits
- Credit Repair for Bad Credit
- Dealing With Debt: When You Can't Pay Your Bills
- Debt Collectors, Collection Agencies & Debt Buyers
- Debt Relief & Consumer Lawyers
- Getting Loans & Credit
- How Creditors Collect Debts: Repossession, Wage Garnishment, Bank Attachment, and More
- Managing Credit Card Debt
- State Debt Management Centers
- Student Loan Debt
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