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Debt Negotiation Q & A

Smart Debt Negotiation

Should I try to negotiate the debts on my report before starting your credit repair program? Get Answer »

Paid Debt & Scores Fell

I paid off an old debt and my credit scores fell. What happened? Get Answer »

Negotiation Advice

My credit repair is about done and I would like to negotiate my remaining debt. Any advice? Get Answer »

Credit Repair and Debt Negotiation

Debt negotiation is a useful companion to credit repair and an art unto itself. Before you consider contacting a creditor or collector to discuss the possibility of settlement you should take appropriate steps to determine the validity of the subject account.

Too many people starting credit repair programs attempt to negotiate with the collectors reporting on their credit reports. In a surprising number of cases the collectors represented on your credit report no longer own the debt. And it happens quite often that collectors will accept money for debt that has been sold to other collectors. If this happens the new collector is likely to appear before long, and legitimately so.

Prior to starting debt negotiation all collections should be scrutinized. Any collector that has sold a debt is supposed to cease reporting, and yet they rarely comply. All questionable collections should be disputed with the credit bureaus with the intention of removing erroneous accounts. Once the invalid accounts are gone you must note the original default dates for the original debt and calculate the statute of limitation.

Once an account is beyond the statute of limitation the collector can no longer enforce collection through the court system. When a collector understands that you are aware of the expired statute of limitation they should be very willing to negotiate. There are other factors that can influence the negotiability of debt including the dollar amount of the debt and the industry.

Before starting the debt negotiation phase of your credit repair program do your homework. Eliminate all invalid accounts, research the statutes of limitation, and plan your negotiating tactic. A smart strategy can save you lots of money!