This is a common problem of this generation and almost everyone faces it at some point in their life. If you want to get rid of this problem then follow this 6 easy steps.

Debt validation letter

Ensure that the debt is yours and they didn’t make any mistake. You can ask for one or via fax or mail your creditor by letter. The contents of a Letter of Debt Verification and a Letter of Debt Validation are almost the same.

The main difference is the essence of the conflict and to whom the letter is addressed.

If you assume that the debt has been incorrectly reported to the credit office, a letter of debt verification is the finest way to verify your debt.You should also tell the investors if they fail to explain what they have told you and the credit office that you will not hesitate to sue them.

Do not fall for zombie debt

Check if the debt is past the Statute of limitations. In that case it will be considered a Zombie debt; one that is many years old and they cannot hold you accountable for it anymore. And the debt collection business is wholly responsible for this.

The restriction status begins with the last duration of the debt operation. Hence do not take their words verbally. In agreeing to make a deposit, you will accidentally be reactivating the limitation rule.

Try to reduce the debt balance to the lowest possible level

The original business sold the debt to the debt collector at a much reduced price. This frequently leads to debt collectors taking less than you owe when you bargain.

Many collectors must make an appeal to the end of the month to benefit from the quotas before the beginning of a new month. Make the collector agree to take 30 percent or less of what you owe and negotiate your own money. Make an offer they simply cannot refuse.

Please do not record on your credit report your arrangement as settled

Ask them to register as paying according to agreement. Ask whether they could delete the debt-related tradelines.

Also the credit report has trading lines and its history. There are 50-50 chances that the creditor will not agree to this but it’s worth the risk.

You might be required to pay tax of the amount excused by your creditor due to your negotiations

Through cutting no more than $600 off on the indebtedness you owe, you can stop this.

If you can dramatically lower your debt, it can be worth paying the taxes on the debt you need not pay. Be smart of your moves.

Get everything in writing

So you might use what they gave you in writing as evidence if they do not respect what you both decided.

If your creditors report you wrongly, you will need it if you want to make changes to your credit report.

There are many debt relief companies that will help you by teaching all these tricks and tactics.

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