Thankfully, there are many options for unmanageable debt. While some people seek professional guidance from a debt counselor or a credit repair company, there are others who prefer to handle the situation themselves. By handling debt negotiation, you have the opportunity to bargain for your preferred terms on repaying your debt. Though debt negotiation doesn’t guarantee a perfect solution, you have the power to estimate how much you can realistically pay and offer less.
Negotiating with Collectors
Debt negotiation can be an extremely intimidating experience. However, debt arbitration or settlement shouldn’t feel so threatening if you keep our debt tips in mind.
- Prioritize your bills. Focus your first debt negotiation efforts on the accounts with the lowest balances. After establishing communication and rapport with your creditors once these balances are settled, continue paying off the more costly accounts. This is one of the debt tips that keep your payments manageable while keeping your credit and reputation in check.
- Make the offer. Many individuals make the debt negotiation mistake of asking their creditors the minimum monthly payment that they can make. Instead, check your own financial situation, determine how much you can afford to pay, and then make an offer. This assures that you can pay your bills no matter what happens. While your creditor might say no, keeping debt tips like this in the forefront of your mind keeps more power in your hands, which is the purpose of your debt negotiation effort.
- Be patient. We’ve all dealt with them on the phone and know that they can be rude, but it’s crucial to stay patient and respectful in the midst of a debt negotiation. Keep the personal details of your life private and know the protections that FDCPA offers for you. Even if they initially reject your debt negotiation offer, you can always try in another month and they will be more likely to re-hear your case if you were polite the first time around.
As with any financial matter, one of our biggest debt tips is to keep a paper trail and record any conversations with your creditors. This prevents them from refusing to fulfill their part of the debt negotiation.