While effective debt mediation is an art there are four things that remain consistent.

  • The credit provider always wants to get paid
  • The older the debt the more negotiable the debt is
  • Credit providers like dealing with an unemotional third party
  • It’s about who you know

Creditors, particularly unsecured creditors are often willing to entertain reducing a payout figure if they are approached in the right way by the right people.

Creditors know that listing a default or court action does not necessarily get them any closer to getting paid, in fact listing a negative credit item can actually diminish their chances of receiving money as often the debtor will react negatively to the fact the credit provider has affected their credit file and cut off communication with them. It is important to note that the credit provider is not in control of getting paid and they will take any prospect of receiving funds very seriously.

The age of the debt is relevant.  We are often dealing with debts that are years old, in many cases the credit provider has written off the accounts so they are very happy to hear from someone in relation to getting paid.  If a debt is old or has been written off there is a very good chance the amount owed can be reduced greatly, especially if they are dealing with a known and trusted debt mediation company as they know that if a deal can be reached they will get paid.

If a default listing has already been recorded by the creditor or debt collection company the credit notation will be updated to show the matter has been settled.

The fact is credit providers and debt collection companies want to get paid and they are often very happy to hear from a third party such as a recognised debt mediation company to discuss the resolution of an account.  There is often communication breakdown between debtors and creditors and in these situations effective resolution can be extremely difficult.  It is also common for the consumer to be very emotional about the situation which can also make effective negotiation very difficult.

Rather than dealing with the creditor on an emotional level, a professional debt mediation company will interact with the creditor in a strictly commercial way, there interest is to resolve the situation for the benefit of all concerned, including the creditor.  Positive results are seldom achieved by trying to intimidate or bully the creditor, in fact this approach often has the opposite effect.  If approached in the correct way interactions with creditors should be amicable as they will understand that they must also deal with the matter in a sensible manner if they are to get paid.

Don’t underestimate the power of contacts, professional debt mediation companies deal with many creditors on a daily basis and they will have close relationships with many of them, this can be a very important factor with reaching a positive outcome.

The bottom line is if you have a realistic amount to settle a debt you may be surprised what can be accomplished when effective debt mediation is administered.