Highlights of today’s show:
- How good is the enemy of great in our finances
- How to settle an old debt
- If you don’t get it in writing . . . NO DEAL!
- Never intentionally not pay debts to settle later
- Webinar coming up on August 30th at 9PM EST. Details can be found on the blog.
Settling with a creditor can be a lot of things. It can be overwhelming and difficult as you continue to negotiate a deal. It can be relieving to know that you finally paid off a debt that has been hounding you for 5 years. Or it can be nice not to have to deal with calls and letters asking you to pay back the debt.
But none of that matters if you don’t do a debt settlement the right way. I don’t recommend you use a company to settle your old debts, but rather that you do them on your own. But there are still five things you need to remember to do when settling a debt:
- Have the cash to settle
- Be patient in negotiating
- Don’t fall into playing games with the creditors.
- Get the settlement in writing before you pay them the cash!
- NEVER give them access to your bank account
In today’s episode we go over each one more in depth and explain why each of these is needed before you settle an old debt. Also, we discuss the ramifications of settling your debt from a credit report and an IRS perspective. To help out with settling your debt I have created a spreadsheet that helps you determine the amount to settle.
Finally, I am doing a webinar on Thursday August 30th, titled “You Are Debt Free . . . Now What?” I would love for all of the listeners to join us if you’d like. If you can’t make it to the live presentation please sign up anyway to receive information on catching the replay.
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If you have any comments, questions, or ideas for future shows you can send them to me and I will integrate them into a future show. There are two ways to get in touch with me:
1.) Email me at JWFinancialcoaching@gmail.com – Please put “podcast” in the subject line and keep your questions brief so they are readable on air.
2.) Simply fill out the form on the contact page. Please fill out your name, email, and your question/comment/suggestion and we will read it on air.
You can find prior editions of the podcast at the podcast archive page.