Credit Negotiation: Keeping Your Head Above Water

If you’re like many Americans, you are probably struggling with some form of debt.  If it’s not a credit card, it’s a mortgage.  If it isn’t a car payment, it’s student loans.  Unfortunately, debt has become a regular part of our American lives.  In order to keep your head above water, you need to incorporate on essential money management skill: debt negotiation.

Credit Negotiation Basics

You want to get rid of your debt, and you want to get rid of it fast.  Where to start?  Before entering into the credit negotiation process with your creditors, are you already doing everything on your end to cut expenses and focus on debt elimination?  There’s no sense in talking to your creditors about debt restructuring when you haven’t even eliminated your premium cable package.

Once you have eliminated your non-essential expenses, you can begin the debt negotiation with your creditors.  Start with the smaller, local loans and lines of credit you have in your name.  Visit with these creditors, demonstrate your good faith and intentions, and see what they can do to work with you.

Creditors are primarily interested in getting paid.  Also, they will respect your initiative and upfront communication.  At a time when so many loans are going unpaid and people are filing for bankruptcy, demonstrating your willingness to repay a debt means a lot.

Next, try negotiating for a different repayment plan (and/or lower interest rate) with your credit card debt holder.  You may be surprised at what deals these money management skills may lead you into!  If at first you don’t get what you want, don’t be discouraged.  Continue your own efforts, and then appeal to your credit debt holder once again!