You Can Do A Debt Negotiation On Your Own

In today’s economy, more and more people are finding themselves in over their heads when it comes to debt.


In today’s economy, more and more people are finding themselves in over their heads when it comes to debt. Learning debt negotiation skills may be one of the best things any consumer can do for himself, whether he’s in over his head or not.

It can be tough to handle debt negotiation on your own, but if you put forth the effort, you will find that at least a few of your creditors will respond to your attempts favorably. But remember, you must be patient and exercise some flexibility. Negotiating debt can take time, but you’ll come out ahead in the end.

Begin by calling your creditors and asking for a debt hardship program. If you are already behind on your payments, they are likely to agree to this. Most credit card companies will offer a debt negotiation program, which will stop late and over-limit fees, reduces the interest and can help trim minimum monthly payments. You won’t, however, be able to make any new charges.

If you run into opposition during attempts at phone conversations with your creditors, then write letters to them. Explain your circumstances, and tell your creditors what you can afford to pay each month. But be sure to go ahead and pay what you can, even if you don’t hear back from the creditors right away.

You should also write a letter to the collection agency for all debts already in collections, stating that you can pay 50 percent of the debt as a settlement. This may work in your favor more so than dealing directly with creditors.

You may want to consider signing up with a credit counseling service, or even a debt negotiation company, if you can’t reach an agreement with your creditors on your own. You could even consider Chapter 13 bankruptcy if your creditors refuse to work with you and you have no other alternative. This will enable a federal court to enact a payment arrangement plan on your behalf. But bear in mind that this should be a last resort.

Remember that you should not enter into a bankruptcy agreement as a debt negotiation tactic until you have thoroughly researched the matter, and you have considered fully the harm a bankruptcy filing will do to your credit history and credit rating.

Most consumers forget that debt negotiation is their right - so don’t feel forced to pay your consumer credit bills at the expense of your rent, utility bills, food or other necessary living expenses. And be sure to get any agreements you make with any of your creditors or debt collectors in writing.

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