If you’re struggling to pay your credit card or loans, and debt collectors or creditors begin calling, most people prefer not to talk to them. But it’s actually a good idea to pick up the phone and discuss your situation with your lenders. Believe it or not, they might be willing to negotiate with you if you’re facing financial difficulty.
Debt collectors specifically buy a debt, pay pennies on the dollar for it, and don’t particularly have to recoup the entirety of the loan in order to make a profit. In fact, many of these debt collectors could make a healthy profit if you only paid back 25% of what you owed, as an example.
It’s in your best interest to negotiate with debt collectors and creditors. To learn how to do this, please pay attention to the tips that we’re going to share with you below.
1. Know How Much You Can Afford During The Negotiation Process
As you can imagine, it’ll be a lot easier negotiate with your creditors if you know how much you can afford. If the creditor tries to get too much from you, you can tell them that they have to lower their expectations or they’re going to end up getting nothing from you. Since credit card debt is unsecured, many of these lenders have no leg to stand on during the negotiation phase.
[pullquote]Believe it or not, it’s best to go over your financial picture thoroughly to discover how much you can afford to pay back each individual lender.[/pullquote] Then you can negotiate in good faith, come to an agreement about a realistic amount you’ll be willing to pay, and actually pay your debt settlement once and for all.
This is the best way to do business with your creditors when you’re having a tough time paying back your bills. It shows that you honestly care about your debt but you ran into financial hardships along the way and can no longer afford to pay back the full amount.
According to Debt Settlement Programs, a website sharing information about settlement of credit card debt by negotiations, “Debt can be a confusing topic – there is an intricate process for handling your finances, which many people don’t understand. If you have fallen behind in payments, you might not know what to do.”
2. Get Your Agreement Put In Writing
If you’re going to spend the time to negotiate with your creditors, you better get more than a simple verbal agreement or handshake deal. If you come to this agreement, make sure your creditor gives it to you in writing. Otherwise, you have no proof that the agreement even exists.
The easiest way to get it in writing is to receive a debt settlement letter or a contract with the payment agreement. Make sure you have this agreement in writing prior to paying a single penny on the new terms. Some people, unfortunately, end up hounded for money they’ve already settled because they didn’t get their agreement in writing.
3. Ask For Help If You’re Having A Difficult Time Negotiating With Creditors
At the end of the day, if it’s getting too tough to negotiate with creditors on your own, you could always ask for help. Look for a credit counseling agency or a debt settlement company that will handle the negotiating on your behalf.
By getting this help, you’ll have someone handle the heavy negotiating on your behalf. This will relieve mental stress and eventually help eliminate your financial burden.
Please use these three tips to successfully negotiate with your creditors now or in the future.
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