Review our and other free debt settlement tip resources; as well as your state laws, before you begin creditor negotiations. You may also want to consult friends and family for experiences they may have had, their recommendations and opinions about debt settlement.

Nervous? If you feel you don't have the negotiation skills and fortitude to reach settlement agreements with creditors, consider hiring a debt settlement company. It's possible; particularly if your negotiation skills are weak, that a professional debt settlement company may save you more money than you could on your own.

Ready to Begin Your Free Debt Settlement Tips? - Let's Start!

Tip 1: Before you call the bill collector about negotiating a chargeoff, first mail a debt collection verification letter (with return receipt) to challenge the debt, even if you believe the debt is likely yours. You have the right to make a debt collection agency prove:

[a] That the debt belongs to you by forwarding proof to you

[b] That the collection agency is licensed to collect debt in your state

The reason you want to challenge the debt is because if the collection agency fails to provide proof, they cannot legally pursue you for payment, nor can they legally submit a derogatory report to a credit bureau. The sample letter we provided also informs creditors that you don't want to be contacted by phone. Learn your debt collection rights; read the Fair Debt Collection Practices Act.

Tip 2: Check to see if it is a 'Zombie Debt Collection'. Some collection agencies try to collect on debts that have exceeded the debt statute of limitations. If the statue of limitations has been exceeded, you don't have to pay the debt.