When dealing with debt negotiations, you might need to know a good starting place. Where do you begin? Who should you get in touch with? What are your rights when it comes to a debt negotiation? These are questions that you need to answer before considering the negotiation process, and long before you actually enter the room with a creditor. Knowing what you have to offer, what you need, and what rights protect you can be the key to a successful debt negotiation.
Preparedness is Key
When walking into the room with a creditor, there are a lot of things you should bring to the table. You’ll want to take time before the meeting to prepare these debt-related items to help better build out your case.
First, draft a budget that will explain your current financial situation. Build your proposed debt payoff plan into this budget. By showing this level of preparedness, you can also show a creditor how negotiating in your favor could also work to their favor. With the demonstration that you are determined, capable, and interested in paying off your debt, your debt negotiation may go much easier than expected.
In terms of being prepared, you should also know your rights when it comes to negotiations. In 35 states, you are allowed to record your meeting with the creditor. In the other 15, you can record this meeting with the creditor’s permission. As far as back-and-forth mailings are concerned, keep copies of both the creditor’s and your own correspondence. Also, knowing what potentially went wrong can help you in the future negotiation.
Before charging into a meeting room with all of this knowledge, it’s important to take a deep breath and consider that the creditor that you will be meeting with is also a person and some decorum is expected. Leave the swords and sandals at home and come ready to negotiate. A back-and-forth is to be expected. By being polite and confident, and by showing the creditor that you accept your mistake and are ready to fix it, you have a much better chance to move through the negotiation process easily.