Dealing with creditors takes patience and determination, especially if you are attempting to find a debt resolution agreement. Although there are many third part debt relief companies offering to negotiate debts on your behalf, the truth is you can be just as effective on your own following a few simple techniques.
The biggest mistake you can make in a credit negotiation is not knowing what you want from the deal. Are you looking for an overall lower payment? Do you want to pay less than what is owed? Do you need a temporary break from payments? Knowing which of these is your highest priority can give you a leg up in negotiations. If you want a lower payment, ask for a reduced interest rate. If you want to pay less than what is owed, request a settlement in exchange for a lump sum payment or automatic monthly payment. If you need a monthly break, request a forbearance to provide you relief for up to 6 months.
Be Persistent, Yet Polite
Many creditors will act as if they are not willing to negotiate. This is very common, especially in the beginning of negotiations. It is up to you to present your case for financial hardship and persuade them in your favor. Never use abusive or threatening language and keep your tone neutral. However, you can point out things to your advantage such as your prior timely payment history, your good credit score or even mention that you may be considering bankruptcy if you can’t find help with your debts. The key is to engage in calm and appreciative negotiations, always maintaining your insistence that you need help to financially stay out of default.