Negotiating your way out of overwhelming debt can be scary. Credit card negotiations tend to carry a stigma that scares off many people from ever taking advantage of such a great tool. The trick to getting out of debt is what option you choose, but how you pursue that option in order to win.
Tricks Of The Game
The first thing to remember is that your debts are a responsibility and a creditor does not owe it to you to help with repayment. Looking through this lens you should know that in order to convince a creditor to negotiate your debts you will need to do several things.
First, get prepared. This means organizing your debt accounts and evaluating your finances. Determine how much you can afford to repay each creditor. Having a plan or proposal for getting out of debt will show your creditor that you are serious about finding a resolution.
Next, write a letter. It is important to explain your financial situation to your creditor. You don’t have to get too personal, simply explain how your financial hardship came about and how your debts became unmanageable. Present this letter along with a proposed plan for a negotiated debt repayment plan to your creditor.
Last, be convincing. Always communicate pleasantly with a creditor and never use threats or harsh tones. It is important that you stand firm behind your needs, but offer up some flexibility in your proposal. Ask for more than you need so that you can show flexibility when negotiating.