Today a person was telling me an advice he told a lady who had over ten thousand dollars of debt involving a cell phone bill. Apparently this has been accumulating since the 90â€™s and the company has yet to recover it from her. Instead of trying to run away from it he advised her to simply try and negotiate it with them. The key point he mentioned was that you have to emphasize how it will cost them more money to try to hunt her down as opposed to just cutting say 60% of the bill where she can realistically pay off at once. To her surprise that actually worked and she was able to wipe out her debt.
I often hear that advice a lot. I guess the most common examples are two businesses in dispute and if they ever had to use say legal action the lawyers would get extremely rich while costing them thousands of dollars. So therefore the point of a costly legal battle is usually brought up to encourage the two parties to just settle it. This does work with debts many times too from what I have seen.
Of course that doesnâ€™t mean you should just run out and get say a ten thousand dollar credit card debt and then try this technique. But for people who have genuinely made mistakes and want to clear their debt this can be a great way to do it.