Essay The World Of Finance And Business

862 Words Dec 16th, 2014 4 Pages
In the world of finance and business, one of the great truths that present themselves is that everything is negotiable. Even under circumstances where the prices of certain commodities seem as if they are set in stone, obtaining a discount on the price can be as easy knowing how and whom to ask for the same. When it comes to the settlement of balances that individuals own on their credit cards, the opportunities for negotiation as to what is actually owed is greater than ever. A little bit of guts and knowledge is all that is required for reducing the debt balances by almost three-quarters.

It is important, before going into further details regarding anything, to know what exactly is debt settlement. It is the process where a large, single down payment is offered towards an existing credit balance in lieu for forgiveness on the remainder of the debt. For example, a person having a debt of a thousand dollars on a single credit card approaches the credit card company and offers to make a payment of eight hundred dollars towards the debt. The company, in return, erases out the remainder of the amount and forgives his debt.

Readers may be struck with the question as to why a credit card company would want to forego such a substantial portion of the balance that is owed to it. One bug possibility is that the company itself is cash-strapped and in dire need of financial assistance. Another possibility is the fear that the debtor may, even in the long run, yet be unable to repay…

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