Most Americans carry a substantial amount of debt, and many let it get out of control. If you find it increasingly difficult to pay your bills, you might want to consider approaching one or more of your creditors with the intention of making a debt settlement. The bottom line is, your creditor wants to get paid; and they would rather receive some of what you owe, rather than nothing. With this in mind, sit down and add up all you owe each month. Compare that with your monthly income and expenses, and figure out exactly how much of your debt you can afford to pay each month. Armed with this amount, contact one or more of your creditors and inform them that you want to arrange a debt settlement. When you speak with a creditor, explain to them that you want to avoid bankruptcy. This will make them aware that, if they don’t try to negotiate with you, they may end up getting nothing. When they agree to negotiate, start by offering about one quarter, or 25 percent, of what you can afford to pay. The creditor will, of course, want more, but you want to start the bidding as low as possible.

Once you get a deal that both you and your creditor are satisfied with, have them put it down in writing. Before you sign anything, take the agreement to a trusted attorney and have them go over it with you. If the attorney approves the agreement, and you are still satisfied with it, then it’s okay to sign it. If you have any questions, or would like an attorney to negotiate with your creditors for you, call the Woodland Hills offices of Cal West Law. Just dial (800) 568-0707 for a free case evaluation.