Learning How To Talk To Your Creditors

Jan 7th 2011 at 2:19 AM


CEO/DIRECTOR Global Success For All


Learning How To Talk To Your Creditors

Debt negotiation is something you may need to do if you cannot make your payments on your debts. You can talk to your creditors and discuss ways that you can pay, which might suit you better than the payments you are currently due to make. When you are having difficulty making your monthly payments, it is very important to act quickly. Many people put this off and hope the problem will resolve itself. It will not.


Do not think that nobody will notice if you miss a payment. Your creditors (the banks, credit card companies and others that you owe money to) will always notice. They have computer programs set up to alert them any time a payment is more than a certain number of days overdue. They may not contact you right away, but they know!


Sooner or later they will write you a letter, and your best chance is to contact them before that happens. That way, you have the initiative and you show that you want to talk to them. This will reassure them that you are not going to run out on your debt. But you must get in first if you can. Since you do not know when they will write, you need to contact them now. Yes, today.


The first thing to do is to make a list of all of your debts and figure out which you can pay and which you cannot. Probably there are some monthly payments that you can make without a problem.


For the others, calculate what you could pay. Do you need to reduce the payments, and take longer to pay off the loan? Or do you need a payment break this month, so you do not pay at all? This option can be good if your problem is temporary, but it is only advisable if you are sure you will be able to pay in future months.


Then call them. Make sure that you are talking to a person who has the power to approve your proposals, otherwise you can waste a lot of time. Then go through what you propose.

Usually the company is happy to negotiate with you. They may not agree to all of your suggestions but with a little flexibility on both sides you should be able to find an agreement that is acceptable to both of you. They will be happy to know that you do want to pay off the bill and you are looking for ways to do it.


They do not want to take you to court or hire debt collectors. That is an expensive last resort for them, something they will do if all else fails.  Having negotiated a variation in your agreement, the company will write to you with the new payment plan. Check it carefully, and then make sure that you make the payments on time. It is very important to do this because they will probably be watching your account more closely for a while.


If you really do not want to talk to the finance companies and banks, you could hire a debt counselor to do it. However, the finance companies will prefer to talk to you in person. So do carry out your debt negotiation yourself if you can.


See you in the next article....



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