Finding the right debt solution can be a daunting task. Although bankruptcy is an option that is available to just about anyone, many people fear it because of the misconceptions associated with it. Further, most financial experts will advise you to seek alternative options for debt relief before considering bankruptcy. While this may be a good rule of thumb, there are some things to consider about debt negotiation.
Getting It Right
Credit card negotiations are not always easy and many people find the process to be quite stressful. In general, creditors are adamant about collecting their money and they may not always be open to the idea of negotiations at first.
The most important thing to remember during the process is that you are trying to get something from them, and they do not owe it to you to help. That being said you must be absolutely sure you are in the financial position to negotiate. This means that you must be able to prove financial hardship while also proving your ability to maintain a modified payment agreement.
Demonstrating your need for a modified payment arrangement while also balancing the proof of your ability to keep up payments on a negotiated deal can be tricky. Basically, you want to show your creditor that your debt payments outweigh your income, but that if your payments were lowered through an interest rate deduction or temporary suspension you would be able to make those payments. In short: you need a plan. Develop your proposed plan and present it to your lender.