Negotiating Debt

Negotiating Debt

During the process of repairing credit files we are often become involved in negotiating debt for our clients.


During the process of repairing credit files we are often become involved in negotiating debt for our clients.

While effective debt negotiation is an art there are four things that remain consistent.

  • The credit provider wants to get paid
  • The older the debt the more negotiable
  • Credit providers like dealing with a third party
  • Its about who you know

It is important to note that the whole reason a credit provider listed a default or court action was because they felt they were owed money.  They know that listing a default or court action does not necessarily get them any closer to getting paid, in fact listing a negative credit item can actually diminish their chances of receiving money as often the consumer will react negatively to the fact the credit provider has affected their credit file and refuse to deal with them. It is important to note that the credit provider is not in control and they will take any prospect of getting paid very seriously.

The age of the debt is relevant.  We are often dealing with debt that is years old, in many cases the credit provider has written off the account so they are very happy to hear from someone in relation to getting paid.  If a debt is old or has been written off there is a very good chance the amount owed can be reduced greatly.

If a payout amount is negotiated and reduced the default listing will be noted as “settled” as apposed to “paid” that indicates the debt was paid in full.

The fact is the credit provider wants to get paid and they are often very happy to hear from a third party such as Clean Credit to discus the settlement of an account.  There  is often communication breakdown between consumers and credit providers and in these situations an effective resolution can be extremely difficult.  It is also common for the consumer to be very emotional about the situation which can also make effective negotiation very difficult.

Rather than dealing with the credit provider on an emotional level Clean Credit will interact with the credit provider from a strictly commercial standpoint, our interest is only to resolve the situation for the benefit of all concerned, including the credit provider.  Positive results are seldom achieved by trying to intimidate or bully the credit provider; in fact this approach often has the opposite affect.  We find that the majority of our interactions with credit providers are amicable and we make it clear that our intentions are to work with them to achieve a positive outcome; for the most part they are highly receptive to this approach.

It is amazing how many times a clinet has told us that the credit provider will not move on a payout amount and we have been able to successfully negotiate a significantly reduced figure, it’s all a matter of how the matter is approached.

Don’t underestimate the power of contacts.  Clean Credit works with many credit providers on a daily basis and due to this we enjoy close working relationships with them.  When we call they listen and know they can rely on what we are saying, relationship and trust are huge factors with reaching a positive outcome.

The bottom line is if you have a realistic amount to settle the debt you hold the power, credit providers are motivated by payments an its extraordinary what can be achieved when effective debt negotiation is administered.

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