Debt Negotiation

Debt negotiation is the process where a borrower contacts their creditor to reduce the amount of debt owed. This typically involves discussing the possibility of lowering the total balance, adjusting payment terms, or arranging a settlement for a one-time payment that is less than what is owed. The goal is to make the debt more manageable and alleviate financial pressure. Often used by individuals or businesses facing financial difficulty, successful negotiation can lead to more favorable conditions without declaring bankruptcy. It requires clear communication and sometimes, the assistance of a professional negotiator.