Have old debt you have had sitting on your credit report for a long time now? You want to try and get it cleaned up and improve your credit rating? Let me guess you don't want to pay off the ridiculous amount. Well I've got a good tactic to help you clean up your credit and save you money in the process.
First try to understand what happens to your debt when it goes to collection agencies. Let's say you had work done at the dentist a few years ago for which the bill amounted to $100 and you never paid them. The dentist probably tried to get his hard earned money for the first 90 days to 180 days, maybe longer.
At the end of that time they just give up and assume that you're not going to pay them. The firm doesn't want to just loose $100 though, they want to get paid at least some of the money. So what do they do you ask? They sell the debt to a collection agency for a lesser amount, say $30.
The debt collection agency is in the business of collecting debt, they are the experts at what they do and have more time and resources to collect debt than a dentist. The collection agency has a much better chance at getting the money you owe by bugging the crap out of you night and day to remind you of your debt. By now your probably tired of them bugging you huh?
Well the good news is that with careful negotiation you can probably pay less than what they are asking. As I stated above, they bought the debt from the dentist for around 30 cents for every dollar on the debt owed. So it would be smart for you to offer them 50 cents for every dollar owed. This is a win/win situation because the debt collectors get to make money on their investment and you can stretch your dollar to pay off more debt in a shorter amount of time.
Another option to paying off debt quicker is to make more money, right now the internet business is booming. These two ebooks are a must have for anyone that wants to get serious and open up shop online.
Learn how to sell products from home using the net - http://www.ditchtheladder.com
Learn how to flip websites using EBAY - http://www.sell-ebay.com
By Eric Gard
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