photo credit: lemonjenny
Today it is no secret that many people and businesses alike are experiencing higher volumes of debt. Creditors are most likely at their all time high when it comes to collecting on debt in the U.S. today. I recently came across some different strategies you can use to shrink your debt, courtesy of Entrepreneur.com.
First of all, as much as we all wish it would, it will not go away by ignoring the debt collector. So try contacting them and speaking with them in a calm manner regarding the debt problem. Let them know your situation and exactly what kind of monthly payment would be affordable for you, then see what they are willing to do for you.
Try negotiating with them and settling your account by paying a lower one lump sum than that of what you actually owe. Many companies refer delinquent accounts to debt collecting companies, this gives you the upper hand in dealing with the debt collector now for a lower price.
You can request your credit file be updated to reflect that the debt was settled in full once a settlement is achieved. This demonstrates you’re making the effort to resolve your financial difficulties. A well-structured settlement also avoids the need for a debt consolidation loan that may require collateral assets.