Three Ways To Get The LOWEST Debt Settlement Possible | Summary and Q&A

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November 15, 2022
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Consumer Warrior
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Three Ways To Get The LOWEST Debt Settlement Possible

TL;DR

Learn how to settle your debt for less by acting at the right time, providing hardship information to creditors, and getting settlement agreements in writing.

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Key Insights

  • đŸ—¯ī¸ Acting promptly and at the right time is crucial when it comes to settling debt to avoid further complications.
  • 👋 The best opportunity for negotiation usually arises after the debt has been charged off but before it is sold to a junk debt buyer.
  • 😘 Providing hardship information to creditors helps them understand why accepting a lower amount is in their best interest.
  • 🍉 Always get settlement agreements in writing to ensure the terms are followed and prevent potential issues.
  • 🎴 Filing for bankruptcy is not always the guaranteed trump card many believe it to be in debt settlement negotiations.
  • ℹī¸ Other debts with priority, exempt income sources, or unemployment status can significantly impact the likelihood of reaching a favorable settlement.
  • 🈂ī¸ Charged-off debts are still collectible, typically by junk debt buyers who purchase them at a fraction of their value.

Transcript

hey everybody John skiba here from the consumer Warrior YouTube channel and in this video I'm going to give you three things that are key to settling your debt for pennies on the dollar but if this is your first time here to my YouTube Channel please go ahead and click subscribe check on that little bell that way you'll be notified each and every w... Read More

Questions & Answers

Q: When is the best time to act when dealing with debt problems?

It is crucial to act soon but not too soon. Acting quickly helps you avoid further interest and lawsuits, while waiting for your debt to be charged off allows for better negotiation with the original creditor or junk debt buyer.

Q: What information should you provide to creditors to improve your chances of getting a good settlement?

Providing hardship information can make it difficult for creditors to collect on the debt, such as having other debts with priority, conditions exempt from garnishment, or being unemployed.

Q: Is it true that a charged-off debt is no longer collectible?

No, a charged-off debt is still collectible. Often, charged-off debts are sold to junk debt buyers who continue to pursue collection through lawsuits. The best time to settle is after the debt has been charged off but before it is sold.

Q: Why is it important to get settlement agreements in writing?

Getting settlement agreements in writing is crucial to ensure the agreed terms are followed. It protects you from potential disputes, such as the creditor reducing the balance but not wiping the debt from your credit report.

Summary & Key Takeaways

  • Act quickly but not too soon when dealing with debt problems to avoid accruing more interest or facing lawsuits and garnishments.

  • The best time to negotiate a settlement is after your debt has been charged off, typically after 180 days of no payments.

  • Provide creditors with hardship information to show them why they should accept a lower amount, such as other debts with priority or limited income sources.

  • Always get settlement agreements in writing to ensure the agreed terms are followed and to protect yourself from potential disputes.

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