You are falling behind in your bills and feel like you’re financially drowning. Bankruptcy is one option, but by no means the only one when it comes to debt, and should only be used as a final resort. Another viable choice for your company may be to work with your credit card company/collection agency to negotiate a partial settlement, figure out an agreement, or even attempt to get the bills reduced. This is by no means an easy or simple task to undertake, but when it comes to debt the faster you get the ball rolling the better in the long run.
If you are considering taking this option, be aware negotiating a settlement can have a negative impact on your future credit score – however nowhere near the negative affect of bankruptcy, and of course no court visits. After payment, your credit score will also show the debt is not outstanding and has been paid of – a much more preferable outcome than leaving it or declaring bankruptcy.
Debt negotiation/settlement programs work by modifying your debt. They do so by:
- -Reducing monthly payments
- -Reducing/getting rid of late fees or charges on the debt
- -Negotiating a ‘lump sum’ , which can be up to 50% of the original debt
- -Using a combination of the aforementioned
When you hire a debt settlement agency, it is their job to liaise with the creditors on your behalf. They can come to an agreement that suits all parties involved, encouraging the business to be completed as soon as possible and with the best outcome for you. A negotiator will speak with you about your individual situation and then arrange your debt into an affordable amount, with an agreed upon payment/timeline. They will then communicate with your creditors, effectively doing the difficult part for you. As they should have experience in this field, they will be able to negotiate on your behalf to agree on a reasonable lump sum, so then your business can continue to move forward debt free and focusing on the future.
If you are struggling with debt at the moment, and feel that a negotiated settlement may be the right choice for you, contact Cain & Daniels. With over 20 years’ experience in business debt settlement, they bring expert, professional attention to all their clients.