You are in debt, now what? Like so many other Americans you are probably struggling to manage monthly payments to two or more credit companies each month, and you may even owe thousands of dollars. Although you aren’t in a pickle just yet, the constant threat is always looming around the corner. All it takes is losing a job or income source to send your finances spiraling out of control. However, just because you haven’t missed a payment doesn’t mean you can’t do anything to lower your debts.
Negotiating your debts can:
- Lower your monthly payment
- Free up income to be saved or used for other essential expenses
- Prevent you from missing a payment
- Keep you out of debt settlement or bankruptcy
Credit negotiations are just that, a negotiation. While there may be some situations in which securing a deal is more likely, there is no right or wrong time to try and lower your debts. In fact, most negotiations are made based on a potential threat rather than a real one. For example, creditors are more willing to negotiate your debts if they think you may be headed to bankruptcy. Although you don’t want to misrepresent your situation to get a deal, it doesn’t hurt to inform your creditor that you are worried about missing a payment in the future or need help before things get out of control. You might be surprised to learn that creditors look favorably on proactive borrowers.