How to Get Your Debt to a More Manageable Figure

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The unemployment rate in the United States, despite an improvement in November 2009, is still at 10%.
Due to this reason, many Americans are still drowned in debt as they have no income to pay off their outstanding.
In fact, many people in United States do not know that they can negotiate with their creditors for a reduced debt repayment.
During recession, can we get our debt to a more manageable figure? The answer is absolutely "Yes".
One of the easiest ways to do so is to write to your creditors and request them to knock off the late charges, annual fees as well as over the limit fees.
You can also request them to reduce your current interest rates so that you don't need to bear high monthly finance charges.
By knocking off the charges and reducing the rates, you can actually save 30%-40% of your total outstanding debt.
Besides, if you have a sum of cash on hand, you can propose to your creditors to settle your total debt at a lower repayment amount.
The percentage of debt reduction depends very much on your negotiation skill.
If you are good at bargaining, most probably you are able to cut down 50%-60% of your total debt.
If it is agreeable by your creditors, you are advised to pay off your debt with your available fund and become debt free as quickly as possible.
In reality, some creditors may accept your offer right away, depending on how long your past due is.
Some may reject your proposal.
If this is the case, you are advised not to give up.
You should politely counter offer with other proposal which is also a favorable deal for both parties.
With great patience, you are able to settle your debt successfully.
Last but not the least; what is more important during your negotiation process? Make sure your credit rating is well maintained!
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