Debt negotiation is an informal debt relief strategy which involves dealing with your creditors to try and reach an arrangement to repay them back on terms you can afford.
For the debtor (you), this can be advantageous as there is no need to file for a formal agreement with your creditors, meaning no record is placed on your credit file or the personal insolvency index with AFSA.
For a creditor (people you owe money to) there are also advantages, as most creditors are happy to manage the account and collect regular payments.
There are several options available to a debtor who wishes to negotiate a debt settlement plan, these may include:
In most cases where a debtor offers a lump sum payment, it is usually accepted practice that the creditors will accept less than what they are owed.
If you are not able to offer a lump sum payment you will of course need to try and negotiate periodic payments.
If your negotiations are not successful you may need the assistance of a registered debt agreement administrator or a registered trustee in bankruptcy to set up and negotiate your repayment plan. If you are in need of this assistance, it is best that you call us to discuss the most appropriate option for you.
We have experienced and qualified staff ready to assist you now – call toll free on 1800 98 10 70.