Expert: Regan Shinski - 1/8/2011

Question
Hello,

I have recently lost in a default judgement against Unifund from an original amount due of $10000 which is now $26000 according to my credit report.
I have $8000 to $9000 to pay this and am getting ready to attempt a negotiation but am feeling extremely daunted. Can you provide any advice?
Thanks for your time,
Chris

Answer
Hi Chris:

Very little because each creditor is different.  I can give you some general statements about attitude and perspective that may help.

Try to put yourself in their position.  They want money - as much as they think they can get from you.  So in this case, it's best to project an image and make them happier than a pig in you-know-what to get your smaller settlement amount.  So you have to project an image of poverty.  Perhaps the money is lump sum from an inheritance or insurance settlement?  Certainly, you didn't get that much money from income and then you would then have the ability to get more, right???  In fact, you are so financially strapped you have consulted with Mr X. bankruptcy attorney at law.  You are even considering just using this money to pay on your house or medical bills and then filing chapter 7 bankruptcy because you may be out of work for a LONG time.  Do you see my point?  Obviously you have to adapt this to you particular situation and you should avoid outright lying but giving that perception is possible.

Another way takes longer but may be more effective.  This is to use credit repair and get them in violations of the FDCPA.  This process is complicated and there are professional companies (including ours# that due this full-time, so it's difficult to get into specifics at this point in this forum.  However, you basically prove them in violation of federal or state statutes.  This is usually pretty easy to do.  These statutes carry heavy fines.  You use these fines to strengthen you hand and offset the debt.  Do they want to risk paying your attorney $400 per hour in a FDCPA lawsuit or would they just rather forgive or lower the debt amount and settle it?

Again, this process takes a little longer to develop but many people #including myself) have found it HIGHLY efficient and profitable.  The first step is highly efficient and professional credit repair.  See more at www.ficofighter.com.

Good luck, please repost and keep me updated.

Regan