When attempting to negotiate with creditors many issues are at play. While you are trying to obtain the best deal for a lower payment, the creditor is trying to get as much of their money as possible. Credit card negotiations can be quite stressful and many people may not be able to get what they are looking for. However, knowing a few tricks of the trade can maximize your chances of successfully negotiating your debts with creditors.
The biggest mistake people make when trying to negotiate with creditors is not knowing what kind of deal they are looking to obtain. It is a good idea to take a look at your monthly budget of expenses and your income to determine how much you can realistically afford to pay. Paying as much as you can will help get you out of debt faster, but you also don’t want to overextend yourself. Make sure you factor in an emergency fund and savings into your budget before calculating the debt payment you can afford.
Dealing with creditors can be tedious, especially if they are being difficult and/or threatening about your debts. The best thing you can do is to stay calm and continue to politely negotiate. Offer to send proof of your financial hardship or lack of income in order to improve your chances of getting the best deal. Reassure the creditor of your desire to repay your debts, but insist they work with you to make that happen.
If you don’t get the answer you are looking for on the first attempt, call back. Ask to speak to a manager or executive if the creditor is unwilling to help you. It may also be beneficial to send a letter in writing explaining your situation and request.