It is such an easy sell for a sales rep that works for a debt negotiation company. You might have heard or read it before; there is no cost to get started or you do not have to pay a dime to start the process, and so on. This is true, but they never really share how they get paid or how darn easy it is to actually perform debt negotiation on your own.

  If you were going to begin the process of negotiating your debt with one of these companies, then normally all you have to do is fill out some paperwork and decide what repayment term you like. At that point it is pretty simple & you just need to fax them some paperwork and then make your monthly payments as scheduled.

Most of these types of companies promise they will negotiate your debt down to at least half, in fact many of them guarantee it.   Here is the sneaky little way they makes thousands and thousands of your dollars. When negotiating a bad debt, it is very possible to get the payoff down to as low as 20-30 percent of the original amount and sometimes even better than that. Their income is the difference between what they guarantee and their actual success rate. If they guaranteed to settle for 40 cents on the dollar and they get 20 cents on the dollar, then they get the remaining 20 percent. 

For example, if the total debt amount is $20,000 and they promise to negotiate it down to $8,000, there is actually a good chance they can negotiate it down to just  $4,000 and the remaining $4,000 is their profit.  This $4,000 could be yours and it SHOULD be yours. Don not leave money on the table, especially in times like these.