If you are looking for how to negotiate debt, the solution seems to be to do it before it goes to collections.
This is simple, but can work well.
In reality, debt negotiation works like any other negotiation.
And it hinges on knowing that collections agencies pay between 5 and 10 percent for debt that is written off.
See when a debt looks like it will not be collectible, the debt is sold to a collection agency.
So if you can pay more than the collection agency is offering, you have a high probability of cutting a deal.
If your back is against the wall, it might be worth a try?
Next time, let’s just stay out of debt in the first place, shall we?
After all, you don’t need most of what you think you need – if you want to know the truth.
It wasn’t until years later that I learned how she managed to dodge some of the worst debt collectors by proactively calling the issuers of the debt (Washington Mutual, Bank of America, Chase, Wells Fargo), sharing the details of our situation, and offering a smaller sum than what was owed in exchange for the creditor writing off the debt rather than selling to collections. Because a collections agency would typically pay the debt holder 5–10 percent of the actual amount owed, then try to collect the full amount and profit from the delta, my mom’s tactic was often successful.
-Rand Fishkin, Lost And Founder
