Comments Off on How the Big Banks Decide to Settle A Customer’s Debt

You can never be certain the bankers know more than you but you can be sure they have a lot more people working on the problem. The article below discusses working with banks from the perspective of a negotiator. You often are faced with the identical situation, even if the negotiator is your customer.

Should you settle a customer’s debt or proceed full speed ahead to recover it all? The article discusses four variables that influence the decision. You might want to consider these same variables when you make your decisions.

Banks are more likely to settle if the customer’s financial situation is severe and the more severe, the lower the offer they will accept. As time passes since any payment was made settlements also become more likely. The banks strongly consider the ability to attach property or wages with a judgment. In addition, the article lists a a variety of financial, emotional and statistical factors that can effect the negotiation. How many of these factors apply to your decision making process? All of them?

Settlement is never desired. Sometimes, however, it’s the only viable choice and one that makes sense in the long run.

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