Your place for community & resources to find or create work you love
We are so glad you're here and ready to take the next step! We created 48days.net as a place for community. For people to encourage each other and help each other in finding or creating work that is meaningful.
But frankly, we've outgrown it, so we're moving to provide you new resources.
48Days.net will be closing as it is today on November 30, 2017. Until then current members can click the button below to access groups and resources.
If you're new to 48days.net, connect here for a close up look at our thriving 48 Days Eagles Community and to get weekly free resources and motivation as you find and create work you love.
As business debt piles up it drains your accounts, disrupts financial stability and makes it hard to obtain credit along with the frustration of dealing with letters and calls that constantly demand dues to be paid. Observing your current business debt situation may make you feel like there is no practical way out.
The light at the end of the tunnel is that creditors want to recoup their money and this gives you leverage to negotiate a settlement with them. Debt settlement negotiations can help you save money with better terms for repayment and by waiving fees. They can also get you back on the path to boosting your credit rating.
Figure out your financial situation before you embark on negotiating debt settlement with creditors. Write a list of monthly expenses to find out the amount of money coming in as well as how much is going out and where it goes. This information enables you to know what you will afford to pay off debts and the bills that should be paid first. Creating a budget can help you identify extra money that will speed up debt repayment.
Communication with Creditors
Ignoring and avoiding creditors indicates that you are not planning to pay your debt. Maintain cordial communication with creditors as you strategize to clear the debt. Creditors need to be aware that you want to pay your debt even if the money is not currently available. This will assert your intention to pay and will increase their willingness to work with you.
When you are negotiating business debt, offers and details of the terms should all be in writing. This is important for your records and future reference. Assuming that the negotiations for favorable terms were successful and finding out the agreement was not actually honored can land you in deeper financial trouble. Avoid verbal agreements that cannot be verified. A written record of the settlement is binding and it is important to have a copy of the settlement agreement before payments are made.
Negotiating a reasonable offer will help you get out of debt within a shorter period of time. Creditors may waive fees, penalties, and interest in exchange for the agreed amount. During discussions with them, an emphasis is placed on the fact that the debt amount is beyond your financial capabilities and this is why you have missed payments.
Confidence and Persistence
A confident and persistent approach is cited by debt relief experts as essential for getting the desired outcome during business debt settlement negotiations. If creditors reject your offer, there is always room for making other offers and proving that you truly want to work towards payment terms that work for the both of you.
Lenders and credit companies may initially refuse to settle but the goal is to convince them to agree to settle the debt. If you are able to settle as much as you had planned for and the creditor gives you better terms, you will be able to pay back part of the debt.
Although some business owners may be skeptical about the effects or risks of halting payments during the process of debt settlement, a creditor is not likely to settle if you are still making payments, including minimal ones.
Creditors will negotiate when payments are no longer being made and they are aware that filing for bankruptcy means that they will probably get nothing. This gives them the incentive to accept the money that is available when you settle and keep bankruptcy at bay.
Lump Sum Payments
If cash is readily available, you can settle business debt instantly. On the other hand, if your liquidity is compromised, you can set up a savings account to raise a substantial lump sum. Cash is a priority for creditors and the prospect of writing off the debt or losing the whole balance that is owed to them may motivate them to accept settlement when you have the ability to pay in cash.
Settlement programs encourage lump sums because failing to adhere to payment plans due to unexpected circumstances can worsen your finances and credit. If you do not have the funds, save as much as you can and offer to it as a lump sum to your creditors.
Settling business debts can take time and it may be necessary for you or a debt relief agency to have several discussions with the creditor before a settlement agreement is reached. The first step is to get in touch and express the intention of settling a debt and this paves the way for further negotiations with you. Most creditors eventually seal the deal when the offer is worthwhile.
The amount that you offer to pay will depend on what you are able to afford. Your budget dictates the payment rather than what you owe or how much money the creditors expect you to pay. It is normal for creditors to seek larger settlements but they are open to counter offers when you are unable to pay.