If your credit card debt is starting to pile up and you don’t have the means to pay it all in foreseeable future, it is the time that you should start negotiating credit card debt. If you are financially drowning and you can prove it to your creditors, it is possible to settle your credit card debt lesser than you are supposed to pay or negotiate with the creditors for a reduction in the bills for a few months. This can be done by either negotiating with credit card companies you owe on your own, or by hiring debt negotiators to negotiate on your behalf.
Negotiating credit card debt is not an easy task, and usually it takes a lot of time and lots of phone calls. In fact, if you don’t have experience in negotiation it would be best to leave the negotiating to experts and professionals. However, if you want to try your luck and do it on your own, here are tips that might help you in negotiating your credit card debt.
- Call your creditors first before your account goes into collection.
Be proactive, instead of waiting for your delinquent account to be forwarded to collection agency talk to your creditor first. You will likely to have more success in negotiating your debt before goes into collection. But bear in mind that there is not guarantee that your creditor will be willing to negotiate. Some may be willing to work in settling your debt, others may not. However, there is nothing to lose if your try.
- Stick to your story but avoid drama.
You stick to your story when negotiating. Be truthful in stating the reason why you are behind in paying your debt. Whatever the reason is, stick to it. The collectors may not be interested to hear all the details of your hardship, but it would definitely help to let them know why you are not able to pay your bills and you are trying to get back on track.
If you have had a family emergency or lost you job they could be sympathetic and will work with you. However, avoid the drama. They don’t want hear your sob story. What they need to hear is your willingness to work with them so that can you can pay your debt.
- Start to grow some thick skin.
Practically, negotiating credit card debt on your own is akin to begging. There is no room for being sensitive when you are negotiating with your creditors or collectors. Legally, collectors are not allowed to verbally abuse you, but they will not play nice. Expect some insult but don’t take it personally. Grow some thick skin and stick to your story.
- Don’t be discouraged easily.
Expect a “no” answer on your first call, but don’t be discourage easily. Be patient and be persistent. Be nice but firm. Avoid being rude with the collection agents, rudeness will not get you anywhere. You should always sound confident because if the can sense your weakness, they will crush you with that weakness. Don’t take no for answer. Be persistent and firm.
- Put it into writing.
If you come up with an agreement, make sure that it is put into writing before you send any money. They could renege from your verbal agreement and change the terms. It will your words against them, if that the case, they always win. Always remember to put any agreement you decided upon into writing, it is for your protection.