Professional debt negotiation has stolen the lime light of debt elimination ever since the new financial reforms came into existence.
The traditional method of bankruptcy filing was thrown off the stage with the help of the amended bankruptcy laws and the financial reforms.
In professional debt negotiation you need to hire a company to negotiate your debt settlement.
In this method of eliminating debt, you need to have an overall debt of $10k or more.
If the debt amount is less than this amount, you cannot opt for settlement because this figure has been set as bench mark by the government.
The next thing that you need to keep in mind is that the debt needs to be consolidated in one single place.
If these two conditions are fulfilled, you are ready for negotiating your debt settlement.
It is now that you need to hire a professional debt settlement company.
A professional company has a complete knowledge of the banking system and therefore knows exactly how to deal with the creditor.
The professional negotiator will advise you to go delinquent.
This is necessary because it is important to prove that you are in a financial trouble.
The creditor will wait for 12-16 weeks after you go delinquent and then sell off the debt to a collection agency.
The collection agency will give only 20-30 cents to the creditor for every single dollar that it collects from you.
This is the deal that the creditor agrees to.
The negotiator will know when this deal takes place and then contacts the creditor with a better deal of 30-50 cents on the dollar.
The creditor will like the deal because it will mean 100% return on investment for the collection agency.
The creditor will then agree to the deal and will eliminate at least 50% of the debt that you have.
Once the creditor eliminates your debt, you need to repay the remaining amount of the debt to the creditor in one single payment.
This means that you need to keep some lump sum amount of money in your bank.
This is how you eliminate your debt with professional debt negotiation.