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Do I Need a Debt Negotiator?

Melissa Lyken | December 11, 2023

Legal Expert, Paralegal
Melissa Lyken, BS

Melissa Lyken is a senior paralegal and legal-finance content writer with over eight years of professional legal and business experience and a bachelor’s degree in Sociology and Community Studies from the University of California, Santa Cruz.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: Can you negotiate with lenders on your own? Or do you need a debt negotiator? Find out the pros and cons and decide what you're going to do about your debt!

Do you have a hard time making monthly payments on your debts? Are you already late in paying your credit cards and other bills? Do your expenses keep piling up? If you are experiencing this situation and are looking for a solution that can help you escape your debt problems, you may want to explore the possibility of working with a debt negotiator. If you are curious to see if a debt negotiator can help you with your current financial situation, keep reading.

Negotiate for Faster Debt Settlement

Debt settlement is an agreement between the creditor and their debtor for a one-time payment of the unpaid debts or outstanding balance in an amount less than what the debtor owes. It is similar to having a discounted settlement on your unpaid or outstanding debts.

For example, the debtor has an unpaid debt of $40,000. They can make an offer to the creditor to settle the debt by paying $20,000 in a single payment, and in return, the creditor will have to forgive the remaining debt.

Sounds interesting? Well, there are two ways to approach a debt settlement. First, you can do it by yourself by negotiating directly with your creditor. Or, you can hire a debt negotiator.

Hiring a debt negotiator is not an easy decision to make. It takes a lot of courage and trust. But if you want to address your financial problems with someone who can provide advice and experience, getting a debt negotiator is a good option. Keep reading to gain further information about what a debt negotiator can do for you.

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Debt Negotiators Work as Your Advocate

A debt negotiator is a third-party agent and financial professional who helps a debtor develop a debt settlement deal. They negotiate on behalf of the debtor, and their main goal is to help them absolve their debts and regain a good financial status.

When hiring a debt negotiator, you will have to acknowledge that your finances are not keeping up with your expenses and debt. You will need to ensure that there is open communication between you and your debt negotiator.

What a Debt Negotiator Can Do for You

An awareness that you are not alone in your debt battle is a good start. Having someone you can talk to and who can assist you when making decisions is an excellent reason to employ a debt negotiator. Here are the things that a debt negotiator can do for you:

Assess Your Finances and Create a Budget

A debt negotiator helps you assess your financial capabilities and the extent to which you can negotiate with your creditor. They can also help you decide which debt to prioritize. Remember that the final decision regarding how much to pay and to which creditor belongs to you. Debt negotiators will only help, assist and provide options. This is why ensuring open communication with your debt negotiator is very important, as it allows them to convey your current financial situation to your creditor accurately.

Importantly, to successfully pay your future settlement, a debt negotiator can also help you create a budget plan for your finances. They will review your income, expenses, and debts, then produce a budget plan that will help you save money and pay your future settlements.

Negotiate With Your Creditor

Negotiating with a creditor is not as easy as it should be. You have to convince them that you should be allowed to obtain a debt settlement. A debt negotiator will be highly experienced in communicating and negotiating with your creditors. They will know how your credit card companies and other debt collectors operate. Your debt negotiator can provide an outline of what to expect when negotiating a successful settlement with your creditor.

Settle Debt for Less Than You Owe

Having a debt negotiator will help you obtain an idea of the discount you may expect from your creditor. They can also assess whether you may be able to get a better settlement than the ones being offered to you by your creditor.

Request a New Repayment Plan

If you cannot afford a settlement, your debt negotiator can also help you negotiate a new repayment scheme. Once the creditor observes that the debtor has a hard time paying their outstanding debts, most will settle for a new repayment plan rather than financial loss. The debt negotiator can also ask your creditor for a payment extension and an adjustment of interest to ensure a lower monthly payment within your financial capacity to pay.

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How to Know If You Will Benefit From Using a Debt Negotiator

If you are struggling with your unpaid debts, outstanding balances on your credit cards, or other due debts, then it may be time to talk to a debt negotiator. Do not wait for your creditor to sue you and seek a judgment. Receiving a judgment against you may result in the seizure of your properties, garnishing of your wages, or even levying of your bank accounts.

If things are starting to fall apart, you should make the first move to lessen the burden. Begin by contacting a debt negotiator and determining whether they can help you negotiate with your creditor for a debt settlement.

What is SoloSuit?

SoloSuit makes it easy to respond to a debt collection lawsuit.

How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.

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