You are significantly in debt. You have missed several payments and don’t expect to be able to catch up any time soon. First, know that you are not alone. This economy and poor money management on our part has lead many into credit negotiations. So why pay someone to help negotiate your debt when you already have money troubles? Luckily, you don’t have to and can usually resolve your debts on your own.
An Army Of One
Negotiating with creditors may seem intimidating, but it doesn’t have to be impossible. In fact, many people have successfully negotiated down their debts to a manageable level by following a few simple tricks.
Plan Ahead — One thing most people fail to do when entering credit card negotiations is devise a plan. Review your budget and debt accounts to find out how much you can realistically afford to pay each month. Organize your documents because you may need to prove your ability to make payments, but also demonstrate your need for a lowered debt payment.
Be Polite — It is important that you stay calm and collected when negotiating with creditors, even if they don’t. Remember that your creditor does not owe you a debt negotiation and is only doing so as a courtesy. It is much easier to get what you want when you are polite and respectful to those that are helping you.
Stick To Your Guns— When negotiating with creditors it is important to convey your need for a modified payment arrangement. Offer them alternative solutions and ways you can achieve your budget-friendly agreement by giving them examples such as lower interest rates, extended payment schedules or lowered principal debt balances. Be persistent but be flexible.