Many people try to understand what options there can be that are readily available to them regarding dealing with debt collectors and resolving their debt. There is no blanket solution to the debt problem, and the process of debt negotiation could have case-by-case solutions.

Negotiating with credit card companies and large banks could be somewhat predictable, but the same negotiating tactics might not work as well with local creditors or smaller institutions. Medical bills, for instance, could be one debt that is difficult to negotiate. This may be due to contractual agreements with insurers that do not allow for discounting the debt.

Another factor in trying to negotiate a lower pay-off on a debt could involve how the debtors handled their account in the past and whether a number of recent balance transfers or cash advances were involved. Some collectors will flag some accounts and not allow a reduced settlement based on account history.

Another factor in debt negotiations can be the amount of time that a collector has been trying to collect the debt. A debt collector could turn down an initial negotiation but might be more willing to accept it after some time has passed and the debt has gotten older. A debt could also have been sold to a new collector who might be more willing to settle for less.

When consumers get behind on debt and need to negotiate settlements, they might not be sure how to proceed. However, a bankruptcy attorney could help by explaining their available options and handling the negotiations. In some cases, the attorney might suggest filing for bankruptcy, which could provide a fresh financial start.