Not all debt is bad debt, but it certainly can be when balances become too high or financial hardship strikes. One way to go about resolving issues surrounding debt repayment is negotiation. As you may well know, or could have at least guessed, lender negotiations aren’t that easy.
How To Negotiate
Some people will advise you to go in quick and aggressive with a negotiation. This is likely not the best strategy, especially in the beginning. If you are having trouble repaying your debts the first step should be to contact your lender right away, even before you miss a payment. Many lenders look favorably on those who take action before becoming severely delinquent and may be more willing to offer you help. Explain your situation and politely request a review of your options. Ask if your lender is willing to temporarily suspend payments until you can get back on your feet, or at least lower your payment requirement. Some lenders may be willing to freeze your interest rate and, in some cases, reduce your principal.
When Negotiations Don’t Work
One thing about lender negotiations is that they are in the control of your lender. There is no guarantee that you will be able to secure a payment plan that you can afford or works to your favor. Further, not all debts are eligible for negotiation. Mortgage debts are tricky and require a specific form of negotiation and repayment. When you have assets on the line or see your lender isn’t willing to help, Dallas bankruptcy may be your best option. Filing for bankruptcy is a form of debt negotiation, but it gives you the advantage over traditional lender negotiations. Your lender will be required to adhere to the plan outlined by the court without choice. Opening a bankruptcy filing can put you in the driver’s seat of the path to financial freedom without the speed bumps of hesitant lenders.