Debt Reduction   Friday, 09 May, 2008  
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Home > Debt Reduction Options > Debt Negotiation

Debt Negotiation

Debt negotiation is the process of negotiating with a creditor to pay off a percentage of the balance owing. We use various negotiation strategies to get you the best results. Knockout Debt employs licensed and trained debt negotiators to negotiate on your behalf with your creditors and may reduce your balances by an average of 40-60%.

Our debt negotiation program typically takes up to 36 months for the debt to be settled. If need be, we will wait until the creditor makes the decision to agree to negotiate. Our first step is to qualify you for our debt negotiation program. You will be assigned a personal debt consultant whose job is to tailor a debt program to meet your specific budget. It is based on your hardship, ability to borrow or reserve funds, creditors, state, and other factors.

Creditors are aware that approximately 30% of the 1.6 million bankruptcies filed last year occurred on debt that was current. Yes, current. Many people survive by borrowing from one creditor to pay another – often called ‘Robbing Peter to Pay Paul’. Eventually they run out of available credit lines and get stuck. When a consumer filed bankruptcy, the creditor receives nothing at all. A creditor is often better suited negotiating an agreeable settlement. We only work with clients that have legitimate financial hardships who could pursue bankruptcy, if pushed too far. Our negotiators know how to get you the best savings.

One of our initial debt negotiation strategies is to contact all of your applicable creditors. We inform them that our debt negotiation company now represents you and that all correspondence should go through us. One of our most important services is to minimize or eliminate those harassing creditor calls. First party creditors can still contact you legally, but most comply with our wishes. Third party collectors, like collection agencies, must stop by law. Of course we cannot physically force an unscrupulous collector to comply. Our company also utilizes other debt negotiation strategies to slow calls while you are enrolled in our program.

Our ultimate goal is to finalize negotiations with creditors, collection agencies, or attorneys who represent your creditor. While enrolled, you make a single payment each month into an account that you control. As the funds accumulate in this settlement account, we will negotiate settlements with your creditors. Our debt negotiation strategies, if successful, will enable you to escape debt at a fraction of the cost. Once we obtain a settlement, you pay it directly to the creditor. We never handle these funds. You will have the chance to approve or reject all settlement offers for each creditor and will receive a copy of final offers for your records. Once paid, your debt to the creditor is considered Settled in Full or something to that effect. You will no longer owe the creditor anything. We handle each creditor one at a time until you are debt free.

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