Negotiate a Debt Settlement - How do you negotiate a debt settlement?

How do you negotiate a debt settlement?

Arrow Financial attorney's served me with a legal summons. I am being sued for $2, 500 plus $500 in legal fees. I am hoping to settle out of court, but I am unsure what a good settlement amount would be. Should I go as low as 2,000 or even lower? Also, how do I go about asking them for a LOWER amount? Help please :] Arrow Financial bought the debt from a credit card debtor. So it's credit card debt. Will they allow me to pay it back in monthly payments?Or bi-weekly payments? Guys...I don't want to go through a debt consolidation resource. I would prefer to handle this on my own. Thanks

Public Comments

Quite frankly, the amount depends upon what the debts are for. Also, how did you finance these debts? Usually, financial companies are more than willing to negotiate a settlement. I suggest you call them and ask if you can arrange a payment plan. If you are only being sued for $2,500, then they already know you aren't likely to be able to pay for a judgment of that amount. Just call and ask them if you can set up a payment plan. For an amount this low, I suggest a weekly or biweekly payment plan because they are easy to manage. You might wish to do a monthly payment plan - but with a debt that low, you probably couldn't make the monthly payments in the first place. Just call them and ask.
Play the "oh woe is me" game. Whether or not it's true. tell them you don't have the money. Tell them you have$1800 right now that you can pay them if they are willing to accept it as full and final payment. If they say no, go up a little and pretend you can get a little from family or friends. I had an issue a long time ago (as result of divorce) where I had to do this. It helped greatly and saved me a bunch of money. No matter what, make sure when you get that cashier's check to pay them, write "endorsement constitutes full and final payment as agreed" so they can't come back after you later. And demand that they send you a "contract" stating that everything is cleared and done.
Call the debtor , and negotiate honestly. Most people are reasonable, if you act reasonably and tell the truth with evidence as backup.
Set an amount you know you can pay back, then go a few hundred below that to start out. This allows you some room to negotiate and still stay w/in the amount you can afford.
Go to one of these places that will reduce your debt for pennies on the dollar. They are always advertised on TV, whether there is a judgment against you or not. Always ask for a lower amount. They want some money but they can always write off the rest of the debt/judgment.
They are anxious to settle - here is what you do - get in touch with them and tell them you want take care of this debt, but you can't possibly pay the $2,500 but you can offer them $1,500 if they will accept that as payment in full - they will not agree on this amount at first,and will demand more, but stick to your guns and no matter what they say, repeat this" I can only afford $1,500 - that's all I can get to pay you- If they don't agree., stick to your guns- sooner or later they will except your offer- They really do not have much of a choice in the matter, but they do not want you to know that.