You can settle your debts for pennies on the dollar, and fix your credit rating at the same time, if you follow these debt settlement tips and tricks. They're guaranteed to get creditors off your back, and get your credit rating back on track.

DEBT SETTLEMENT TIPS AND TRICKS

1. Get a copy of your credit report. If a debt you've defaulted on doesn't show up on it, don't pay it. Save your money to pay off the debts that are hurting your credit rating.

2. When you're in default never make a small payment to get a collection agent off your back. They figure if you can pay once, you can pay again and they'll just bug you more. Instead, negotiate all of your settlements at the same time. Make it clear that there's only so much money to go around, and the unreasonable creditors who refuse to reduce their demands will regrettably be left with nothing.

3. When you negotiate a debt settlement provide the collection agency with a list of your other debts; make it clear that bankruptcy is a viable option for you but that you'd prefer to avoid it if possible. Also, if you have any medical problems, or evidence of disability provide them with this too. You can typically fax them these materials. Try to let them make the first proposal. You may be pleasantly surprised. Always counter it. You may be pleasantly surprised again. Remember, much, if not all, of the amount you owe them is interest which they've been charging you at a very healthy (for them) rate. They are still sitting pretty even if they don't collect every penny of it, and they'd much rather get a reasonable settlement now than nothing later.

4. Make clearing your credit report a pre-condition of any debt settlement. Don't pay a dime otherwise. You may get the run around from your collection agent. Ask to speak to his or her supervisor. Essentially, the only way to remove the record of your default from your credit report is if it is there due to an error. An error, however, can be defined very loosely. Perhaps a charge was made in error, a merchant failed to credit a return, a payment sent on time was not recorded in time - any mistake will be sufficient to permit the creditor to request that the default be expunged from your credit report. They will go along with you on this because they want you to send them the money. Get them to put in writing that they'll remove the record of the default from your credit report immediately upon receipt of your payment. You could then sue them in small claims court if they failed to follow through, although in my experience they typically will live up to their end of the deal and have the default removed from your credit report without further fuss.

If you follow these debt settlement tips and tricks you'll be able to settle your debts for far less than you currently owe, and clean up your credit report at the same time.

Learn more about this author, David Riel.
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