According to Experian, it’s been estimated that almost 340 million Americans are currently facing some form of financial debt. Of this amount, the vast majority are struggling to repay their loans and as a result, many have had to turn to alternative solutions for help and support. When it comes to debt settlement in 2023, one positive is that many are eligible to apply for consolidation of their loans, with many more keen to consider negotiation with their lenders in an effort to reduce, and possibly even eliminate the amounts that they owe. In this post, we’ll be exploring the option to negotiate for debt settlement this year, and those who may be eligible to apply.
What is Debt Negotiation?
The simplest way to describe this solution would be to define it as an option whereby the amount owed can be negotiated down to a lower sum. As individuals, many borrowers may not find this option easily as the task can be fairly technical, with applications needing to be submitted and this is why a lot of debtors turn to third-party agencies, such as Americor, for support with settlement programs.
How Does Debt Negotiation Work?
The negotiation process can be tricky and often lengthy, and there are two main ways to approach the solution. The first is by contacting the lender directly as an individual, or a business – in fact, whichever entity is in debt is eligible to make a negotiation claim. This is best done by booking an appointment with the lender to avoid lengthy call-waiting times, or extended delays when contacting via a postal letter.
One of the main hurdles faced by debtors is the fact that many lenders are unavailable when it comes to arranging meetings, or even being willing to discuss with the debtor. This is why many people turn to alternative options, especially those that can take on a claim and negotiate with banks and lenders on behalf of the debtor.
How Can These Services Help?
Companies such as Americor work by discussing options with those in need of debt relief, before suggesting the best plan of action.
When a solution with as debt negotiation becomes a possibility, the team at Americor can take on the case and contact the lender on behalf of their client, in an effort to modify the terms of the loan and with a little luck, reduce the amount owed (or the cost of repayments). As these big entities will often have direct access to lenders, they can help to streamline the process in a way that speeds things up, without reducing the potential to save their client money.
Does Debt Negotiation Always Work?
Unfortunately, there’s no method to guarantee the outcome, but that isn’t to say that there is no point in trying. In most cases, the debtor will find that their credit score ends up taking a hit, but this would be the case with any method of debt relief. As soon as a lender has to re-adjust their expectations, a mark will be made against the credit score, but this can be minimized during the negotiation process in some instances.
Debt negotiation does come with some risk, with the main concern being a definitive ‘no’, which would constitute a rejection of the negotiation attempt. The likelihood is higher when attempting to negotiate as an individual, and lower when using a third-party service, as they will undoubtedly know the system well and how best to take advantage of the options available to the debtor.
In an effort to reduce debt and renegotiate a fairer repayment plan or borrowing policy, turning to a provider such as Americor has been a beneficial decision for countless Americans over the years. Not only can a service like this help with advice and support, but they can actually act on behalf of the debtor, negotiating with their lender in a professional setting, and as Americor is a name that is trusted by banks, they are often taken far more seriously than individuals applying on their own.
The support of these agencies can be priceless for many, with a multitude of options available to those in debt that can be chosen from after receiving advice from the financial experts themselves. Even in a worst case scenario, this type of service can help to reduce repayments, with the best-case scenarios sometimes making a vital difference to the stress and livelihood of the debtor.