Free Debt Help - Renegotiate Debt
Return to Free Debt Help Homepage
This solution should only be used when you are having trouble meeting your debt obligations or you are unable to meet the debt obligations. It is done through companies offering debt elimination, debt counseling and other debt help programs. The pluses are that it can often eliminate some or most of your unsecured debt (including credit cards and personal loans). The biggest negative is that it will tarnish your credit for the next few years.
What to expect from debt renegotiation?
· Can reduce your unsecured debt by anywhere from 25-75%.
· Can get rid of interest, late fees and penalties.
· Will typically hurt your credit, but if you already have been making late payments, may not hurt it anymore than it already was. Also, if debt renegotiation (also known as debt elimination) works perfectly, your credit doesn’t necessarily have to be tarnished.
· By eliminating your debt, you should be able to make future payments, thereby decreasing the number of late payments and penalties that hurt your credit. In essence, debt renegotiation can help you rebuild your credit.
· When you hire a debt services company to renegotiate your debt, you are hiring someone to review your debt structure, make recommendations as to how to reduce it the furthest (with the smallest impact to your credit), create a debt reduction plan, and then actually work with your creditors to reduce, negotiate down, or eliminate your debt.
· Different companies offer very different services, but typically, the more you pay the debt company (sometimes based on the amount of debt they can eliminate), the more work they will do for you to help you eliminate your debt.