Dealing with creditors is never a fun experience. Whether you are fielding collection calls or trying to get something from them, creditors tend to be short and inflexible. As you can imagine, credit card negotiations is no different. Since the creditor holds all of the veto power over any negotiated deal, getting them to help you alleviate your debts is not always easy. However, there are a few things you can do to boost your chances of successfully negotiating your debts with creditors.
Know Your “Must Haves”
One mistake people make when entering credit negotiations is not knowing exactly what they want to get out of the deal. It is important to determine what type of deal you want to negotiate before you contact your creditors. Do you want a reduction in the principal amount owed on the debt? Or a reduced interest rate? Would you like to have your account closed while you pay it off over a specified period of time? These are questions that you should be asking yourself ahead of time.
If you are unsure about what type of changes to the terms and conditions of the account you are looking for, seek counsel from a credit lawyer. The can provide you with guidance as to which type of arrangement would best suit your financial situation. Further, they can help you negotiate, giving you more of an edge when dealing with stubborn creditors.
Know Your “Compromises”
All negotiations are a game of compromises. You need to develop a list of things you are willing to compromise on and to what extent. If you are willing to repay your debts over a certain time period, but can’t afford the payment as is, make that clear to the creditor. It is best to have a few options listed that you can provide as a rebuttal to a creditors suggestion, to show them you are still trying to meet them halfway.