Finding a way to successfully lower debts is one way to alleviate financial pressure while you work to repay your debts. Because not everyone needs bankruptcy in order to get out of debt, doing it yourself may seem like a scary thought. Actually, it isn’t as hard as you might think, but it does take preparation in order to be successful.
Knowing What You Want
The first thing that is required in any successful credit negotiation is outlining what you want out of the deal. To do this, you must take a look at your debts and income to evaluate how much you need in order to pay off your debts. It is important to establish where you are financially. Do you need help with maintaining minimum payments or are you looking to get out of debt faster?
- If you are simply looking to be able to maintain minimum payments, you should be asking for a reduced monthly payment requirement in your negotiations. Ask your creditor to lower your monthly payment requirement or principal amount owed on the debt.
- If you are looking to get out of debt faster, ask for a lower interest rate on the account. Lowering the interest rate will help you pay more towards the principal amount owed each month, rather than that money going towards interest.