Proven Debt Settlement Negotiation Tactics

You can get out of your debt if you know how to talk to your lender, and reduce the overall debt. If you are successful, the negotiation will keep you safe from garnishment, bank levies, foreclosure and even bankruptcy. However, before you talk to creditors, you need to understand the negotiation strategies. For this, learn the general negotiation tactics to talk with different creditors.

General Tactics

 The Bankruptcy Play: Regardless of theactual bankruptcy filing, you need to hint a possible near future bankruptcy to the lender to convince them tolower the debt. The whole amount owed to anaverage creditor can be discharged which means unsecured creditors get nothing. Most people will prefer to settle their debts for pennies on thedollar instead of getting nothing. This is a good example how polishing your Debt Settlement Negotiationscan pay off.

  • 50% or Less

It will take you some time, but some unsecured creditors will accept 30%-50% of the total amount. If you are interested, throw a lower offer (15%) and start building your case from here.

  • Manage Your Funds

Most lenders will settle the debt if you forward your payment right at the moment. Debts who amass money before negotiations can transfer the funds instantly. They will get a lower settlement offer. If you do this, your lender will prefer to take whatever money he can at the spot instead of waiting for smaller payments over time.

  • Focus on the Big Picture

After negotiating, again and again, the debtor can ease up, but this doesn’t mean he will forgive every penny. The debtor’s goal in negotiations is to buy some time. If you can’t pull this off, then wait till you have made some payments before you bring up the topic again.

Tips to Negotiate with Different Lenders

 Your Debt Settlement Negotiations strategy depends on the type of debt you want to settle. Following, we are teaching you how to negotiate with different types of creditors!


There are different home modifications available which can help you to ease expensive mortgage payments. This will help you to free up funds so you can take care of other expenses. It is ideal for most lenders to work with you to modify the case, but it’s rare. Debtors work to try to modify loans, but you will have to complete a multi-page document and submit it again and again. Plus if you fall behind a monthly payment, you won’t qualify for the modification.

Auto Finance

It’s easy to negotiate secured auto loans if you took it from a small local bank. To make sure you are successful, you need to lead with bankrupt and have a payment on hand. Be persistent, and you will succeed. 

Student Loan

This is the toughest nut to crack as student loans are hardly dischargeable in bankruptcy. But some government programs will cut off on your monthly payments under certain conditions. If you are going through a hard time, pay your installments in time, or cancel the loan, you will save some money. welcomes thoughtful comments and the varied opinions of our readers. We are in no way obligated to post or allow comments that our moderators deem inappropriate. We reserve the right to delete comments we perceive as profane, vulgar, threatening, offensive, racially-biased, homophobic, slanderous, hateful or just plain rude. Commenters may not attack or insult other commenters, readers or writers. Commenters who persist in posting inappropriate comments will be banned from commenting on