The big five for debt mediationJohn Dickinson, DebtX
While every client’s situation is different there are a number of things that remain the same with debt mediation, they are:
The credit provider wants their money
Despite why they say, a credit provider knows that commencing recovery or legal action or threating a borrower may not get them any closer to getting paid. In many cases pushing too hard can actually reduce their odds as the borrower might withdraw and break off communication. Given this, the credit provider will seriously consider a responsible offerto settle the matter quickly.
Old debt is good
The longer a credit provider or debt collector has been trying to recover the money the more likely they will be to consider a reduction on the debt. In these cases, credit providers and collection companies are very happy to hear from someone in relation to the resolution of the account. In the right situation, older debts can be settled for far less than what is outstanding.
Credit providers are happy to deal with a third party
There is often a lot of emotion between borrowers and credit providers when debts fall behind. Many borrowers end up feeling angry or upset and find dealing with the creditor effectively difficult. In these cases, most credit providers and collection companies will welcome the introduction of a third party such as a debt mediation company. This is often seen as a real chance to settle the matter, and if handled correctly, such matters can be resolved, often to the benefit of not only the creditor but the borrower also.
Relationships with credit providers help
Who you know is important. Professional debt mediation companies deal with many different credit providers regularly, and they know who to contact and how to best approach the creditor to yield the best outcome. In many cases greater savings have been achieved due to the positive relationship between the debt mediation company and the creditor.
The borrower’s situation needs presented correctly
Credit providers will not reduce account balances just because they are asked to. It is important to present the borrowers situation in such a way that it points out the benefits for the creditor to accept less now rather than continue to pursue the borrower for more. An experienced debt mediation company will now how to structure a settlement proposal to achieve the best outcome for the borrower.