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Credit Card Debt Negotiation – How to Negotiate and Significantly Reduce Credit Card Debt

Credit card debt negotiation is an important part of the debt relief program. People get relaxation from debt with aid of credit card debt negotiation. Previously people we experienced an increase in the usage of plastic money, the plastic money was used so much that it almost became impossible for the debtor to pay the money back to the banks. Banks started facing the threat of getting defaulted. In order to save themselves they started using different tactics to get back their money. These tactics were so harsh that people started filing insolvency due to which the economy got badly damaged.

Credit card debt negotiation is the process in which the debtor negotiates for a discount in the amount of plastic money loan he has to pay back. He achieves a discount of more than 50% if he is a very good negotiator. He is even able to achieve extra time to repay the loan and they are charged low interest rates for the remaining amount of loan. Due to all these characteristics, making repayment of the loan by using this method is considered as the most effective liability relief methods.

It is very important that you are a very good negotiator because only good negotiators can get maximum results. A debtor who is not a good negotiator will never be able to maximize the discount he can achieve. He will end up getting a small discount which will be of no benefit to him. A negotiator or debtor should have the negotiation skills as similar as the skills of a lawyer. Lawyers negotiating skills are considered as the best to tackle any creditor. Creditors are not easy to break and the appropriate skills needed are very important.

If you feel that you do not have the appropriate negation skills then you should consider hiring a liability negotiating firm which will help you get relief from liability through liability settlement. This firm will assign a professional negotiator to your case that negotiator will try to get the best result for their clients. These negotiators are either professional negotiators or are lawyers who have a lot of experience ion this industry and their negotiation skills are very well polished due to this experience. These negotiators have the appropriate skills to tackle the creditors and they are well aware of certain loopholes in the financial industry and they know how to take advantage of these loopholes and break the creditors.

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Be Amazed at How Many Billions Are Presently Enrolled in Debt Settlement Programs

If you’re someone that reads a newspaper, listens to the radio, watches T.V. or surfs the internet, then you’ve obviously heard and seen the zillions of advertisements that guarantee quick and almost painless debt relief, and the most widespread magic potion right now is debt settlement

If you were drowning in debt, and got a reply from a debt settlement company that read like this, “We are generally able to settle debts for about 40 cents on the dollar and have our clients debt free in a very short period of time on a low monthly payment plan and we charge the lowest fees in the industry”.

Then you’d most likely feel that your prayers had been answered, and they might have been, because most debt settlement companies do work hard for their fee, and they do help people.

The biggest problem that presently exists is that the continuing financial crisis has spawned a multitude of new companies that just want to rip off people that are already in big trouble, and right now the debt settlement industry is largely unregulated, and only about a dozen states have laws that govern debt settlement.

The next biggest problem is, that most Americans with serious debt trouble have almost no knowledge about the different ways that exist for getting out of debt, and they usually have next to no idea of the differences between, credit counseling, debt consolidation and debt settlement.

All three of the above can work, and a good credit counseling agency will quite often recommend either debt consolidation or debt settlement, but the two things are completely different and what suits one debtor won’t suit another.

What They Are And What They Aren’t

Debt Consolidation
a) Using a single loan such as a home equity loan to pay off multiple debts at full price.

b) The biggest advantage is usually the lower interest rates, but debt consolidation loans are becoming much more difficult to obtain.

c) This option is generally credit score neutral.

Debt Settlement
a) You’ll generally have to owe at least $7,500 and be at least sixty to ninety days in arrears before you can enter into the debt settlement process.

b) During the 60-90 days you will be pestered by debt collectors.

c) Not all companies will agree to debt settlement although most will, and they all prefer it to bankruptcy.

d) You will have smaller monthly payments.

e) You will damage your credit rating, but how much will depend on your previous rating.

Credit Counseling
a) Involves paying a small fee, which is usually under $100 to a service that offers budgeting advice and will often negotiate lower fees and interest rates with debtors for an additional monthly fee.

b) Debtors pay the counseling service, which in turn pays the lenders.

Bankruptcy
a) A federal judge will consider your debts and assets, and decide which debts get paid and which get erased.

b) Bankruptcy is more and more frequently the only alternative for many people, but it has the longest negative impact on credit ratings, and it is quickly becoming far more complicated to do than it once was.

How Many Companies And How Much Money?
According to the debt settlement’s lobbying group, The Association of Settlement Companies (TASC), there are perhaps 1,000 firms that presently offer debt settlement services, and an amazing $20 billion in consumer debt is currently enrolled in debt settlement programs.

What Can Be Done And What Can’t
Andrew Housser, who sits on the board of The Association of Settlement Companies, said that settlement firms offer an important service to customers in certain circumstances, but added that the big influx of new settlement firms, many of which are being run by former mortgage industry workers are getting the industry a bad name.

“Hundreds of companies are flooding into this and frankly some of them don’t know what they are doing. There’s been explosive growth, and unfortunately you get some good players and some bad players”.

TASC (The Association of Settlement Companies) is actively supporting regulation in 24 states, in an attempt to reign in abusive companies, and it’s also self-policing its 200+ members and investigating complaints against other settlement firms lodged via the association’s web site, TASCsite.org.

Housser also said that credit counseling isn’t a viable alternative for many indebted consumers.

“For example, consumers who enroll in credit counseling generally still face high monthly payments, because counselors can only negotiate lower interest rates and friendlier loan terms and not principal reductions and many debtors can’t afford those payments”.

He then offered an advantage that debt settlement sometimes has over credit counseling.

“Some people fit in sweet spot of debt settlement, where they can’t afford credit counseling programs but still have some income. We give them a program to work out their debt for less than face value and typical monthly payments for debt settlement are 1 to 1.5% of total debt, vs. 2 to 3% for debt counseling. Total settlement fees typically average about15% of debt, meaning a consumer with $10,000 in debt would pay $1,500 to a debt settlement company for help”.

He justified the seemingly fees, saying that “debt negotiation is a very labor intensive business and legitimate companies clearly list their fees up front, and don’t pile on extraneous charges”.

The Best Advice
If you’ve tried different debt reduction techniques and none have worked for you, and you’re getting deeper into debt every month and have to do something, then be careful not to jump out of the frying pan into the fire.

Regardless of whether you decide to go to a credit counseling agency, or a company that offers debt settlement and/or debt consolidation, only choose a company that is BBB (Better Business Bureau) affiliated, and don’t sign anything that you don’t fully understand, even if it means having a lawyer explain the finer details to you.

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Marketing a New Product

Marketing a new product can be difficult. There are press releases to write, Internet marketing strategies to research, and a host of other things to consider when marketing a new product. Collective buying is a great way to tell people about your product and generate sales. It’s no secret people love a good deal. In fact, people who love to shop sometimes buy things they don’t need, just to take advantage of a good deal.

Offer a Good Deal

Collective buying websites like Living Social and Groupon are becoming an increasingly popular option. These sites give customers special prices for products, services and even travel packages. Members of these sites can opt-in to email alerts or download a mobile application that will notify them of deals they may be interested in based on their preferences.

Marketing a new product using these sites may cost you, but it is also an opportunity to show customers what you’re worth at little risk to them. When your product is featured on a group-buying site, all of the site’s users in your specified area are notified. Customers who may not generally be interested in your product might come across it when checking their email online or scrolling through their smart phone.

Word of Mouth

Group deals have the added benefit of encouraging word of your product on the streets. A college student, for example, is scanning through her phone and sees an advert for your custom-made ties. She decides to try your product out, since Father’s Day is approaching and you’re offering $50 worth of ties for $25. When she receives the product, she is impressed and tells her friends about your website. If two of her friends purchase ties for $50, you’ve made a $75 profit. Your satisfied customer has taken some of the legwork out of your internet marketing campaign.

Deals typically have a timeline, which puts members under pressure to buy. These sites also offer clients the chance to get their deal free of charge, if a certain number of their friends purchase the product during the promotion. Advertisements are equipped with social buttons so individuals can share your deal via text message, social media and email. When marketing a new product, social media is vital. With collective buying, your customers have an incentive to do some of that social media promotion for you.

Product Placement

Product placement is also an important part of marketing a new product. Group selling allows you to customize your offer by market. In markets that tend to spend more, using the above example it might be better to run a Buy 3 Ties, Get Tie Free promotion. This way, customers still get a deal, but you get a higher profit. For example, if ties are $50 each, it only cost you $50 to make $150. This way you can earn more than the previous approach before the customer even shares your deal online.

Marketing a new product using group buying sites is a great option for growing your profits and customer base. Take this approach and save on pulling together a marketing team, writing a press release or manually promoting your product online. Try it out and be amazed by the outcomes.

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