If your bills are piling up, the late fees are accruing and the phone calls from bill collectors are getting out of hand, it’s time to negotiate with your creditors. You’ve put off this problem long enough. Now your debt has taken control of your entire life. It’s always wise to never let things get this bad. But if this is your current situation, there is a way out of this. Here are 6 ways to successfully negotiate with creditors.
Talk To The Supervisor
When you make your phone call you’ll talk to a customer service representative who most likely earns minimum wage. This person has little authority to make changes to your account. If you want to make any real progress at reducing your bill you’ll need to talk to the supervisor. Ask to be transferred to them because this is the person who can actually make a difference.
If at first you fail, try, try again. There are different people who work in the payments department. If one person flat out says no, then hang up and call the next day at a different hour. If the next person says no, then call on a weekend. If the same person picks up the phone then simply hang up and call back later.
To negotiate with creditors, you actually have to negotiate. This means that you make an offer, they respond with their offer, then you make a counter-offer. Don’t just assume that their response is their final offer. Be firm with what you want and at the same time be flexible enough to be a good negotiating partner.
Don’t Be Intimidated
Your creditors will attempt to scare you with all sorts of legal jargon. They will make all sorts of threats to garnish your wages or get you thrown in jail. The bottom line is that they cannot physically hurt you and they are not likely to pursue legal action against you. Often times, the worst they can do is damage your credit score. But then again, if you’re in contact with a collections agency, odds are your credit is already messed up.
When attempting to negotiate with your creditors, make them multiple offers. If you just don’t have the money, offer to pay them a smaller monthly payment for a longer period of time. If you can’t afford $100 per month for a year, ask them if you could pay $35 per month for 3 years for example. Another example is this: if you owe $1,500 and haven’t paid anything in months, offer to pay them $750 at once to make this delinquency go away.
If you don’t feel comfortable making the phone calls yourself and talking to your creditors, there is another option. You can hire a debt counselor to do this work for you. This is going to cost you some money, but these people are experts at lowering what you owe. So this investment may pay off in the end.
If your debt negotiation has caused you credit score to drop, your only option for getting a loan is to opt for those bad credit quick loans. While these types of loans have a high interest rate, a payday cash loan might be the only option to paying your bills or rent.