Settling of your pending debts is critical to improve your financial status and credit score. Settling the debts through a reliable credit counseling agency is always the best option available. It also helps you in improving the credit score. When you try to negotiate, with the collections agency, there are certain things to take into consideration. Take a look.

Debt Settlement

The Amount to be Agreed Upon for Repaying
You need to act wisely and carefully while trying to settle for a certain amount for payback. When you are agreeing to pay off a specific amount to the credit collection agency, make sure that you receive the written document of the agreement being made.

What Debt is Associated with the Payment?
This is one crucial factor to consider. In most of these scenarios, there are multiple debts under the scanner. To settle for a fixed amount for clearing off the debts, you definitely require a written documented proof regarding the amount you would be paying off. Always ensure that the original creditor’s name, as well as, the account numbers must be accessible to the credit collection agency. Also, you need to ask for a written statement that would signify the details about the debt. Always be specific regarding such issues.

Focusing on the reviews

The deadline impact
According to certain debt settlement reviews, there are some credit counseling agencies offering a specific deadline to clear off the debts. Yes, the amount to be paid is a revised and a lowered one, but if you fail to meet the deadline, the terms will be voided. Also, when working under such norms, be sure to have a written proof of the terms and conditions (deadline effect should be clearly specified).

The party to whom the debts are repaid 
To whom you are paying off the debts is crucial. As already discussed, your debt might move from one agency to another, depending on the circumstance. Whatever may it be, always ask for a written evidence that mentions in clear, the account to which you would be paying off the debt. Remember, paying the debt amount to a wrong agency makes you fall deeper, from where there will be no point of return.

Post payment terms
Never forget to focus on the terms of your account balance, post the payment part. As mentioned above, getting a documented proof in writing is essential. Same goes here too. Once the payment part is settled and cleared off, you need to ask for a written proof of the same. This helps you in preventing any further negative remarks on your credit scoring.

Remember, you should never pay a penny unless there happens a proper agreement and you receive duly sealed papers from the credit counseling agency. There can be an upfront fee to pay in order to start things up. Also, you must consider the negotiation act carefully. The more you negotiate and delay on the repayment part, higher would be the negative impact poised on your credit score.