Debt Negotiation is the process of reducing your unsecured debt through the act of negotiating with your creditors for a reduced settlement amount as payment in full on the debt you currently owe. For example, Cambridge Life Solutions represents John and he owes Creditor A $10,000; he has just started to fall behind on his payments. Cambridge Life Solutions contacts Creditor A and explains John i
s having difficulty paying because he is experiencing a financial hardship; his overtime was eliminated at his job. Cambridge Life Solutions negotiates with Creditor A and Creditor A agrees they will take a negotiated settlement of $3,000 as payment in full on John's debt. Cambridge Life Solutions contacts John to confirm the negotiated offer for John's final approval. If John agrees, John sends $3,000 to Creditor A and the debt is considered paid in full. John saves $7,000 from what he owed, hundreds if not thousands of dollars in interest and Creditor A can no longer harass him for any further payments. This program is a strong alternative to debt consolidation and credit counselling. While those programs are designed to simply reduce your interest rates and late fees, they do not lower your total debt owed thereby leaving you in the same amount of overwhelming debt. Only debt negotiation can reduce the principal amount of what you owe. Debt Negotiation is an excellent program for consumers that need significant monthly savings and are experiencing financial hardship. The question is commonly asked, "what motivates the creditors to settle the debts?", this is a very good and important question. From a business perspective the creditor knows that in your current situation you may have to ignore the debt completely and pay them very little or file bankruptcy where they will typically get no payment at all. Through the act of debt negotiation the creditor is able to recoup a portion of the debt and you are able to avoid bankruptcy and other negative ramifications of not paying your bills at all. Another strong benefit of debt negotiation is the elimination of creditor harassment. Once a creditor has agreed and accepted a settlement as payment in full they can no longer harass you for payment.
