Stand Your Ground: 10 Tips on Negotiating with Creditors
- Get everything in writing.
Never expect a creditor to uphold a deal that was made verbally. Always get a signed statement showing the debt fully paid.
- Keep good records.
Make a copy of everything you send and log all calls made with the time and whom you talked to.
- Eliminate Extra Charges.
Much of your debt may be penalties and extra interest accrued on late payments. The creditors are most likely to drop these charges first.
- Don't Accept The First Offer.
Never let the creditor think that they have the upper hand. You are the one with something they want, money.
- Threaten Bankruptcy.
Approach each creditor as if this is their last chance to get any sort of money from you before you declare bankruptcy and they are left with nothing.
- Make Them Feel Sorry For You.
Emphasize the reasons behind your poor financial situations such as accidents, illness, layoffs, etc.
- Do Not Disclose Info.
Answer “no comment” when asked for your place of employment or bank. Send money orders or cashier's checks to protect the name of your bank.
- Know Your Options.
Here are two examples: Different laws apply whether you are dealing with your creditor or a hired collector. And the statue of limitations affects the amount of time they have to deal with you.
- Don't Cave In.
If you aren't getting what you want, end the conversation and call back later. Find out how far they are willing to lean in your direction. Also be cautious if a deal sounds too good to be true.
- Get Your Credit Report.
Know what the creditors are seeing. The three main creditreporting agencies are Equifax (equifax.com, Experian (experian.com, & TransUnion (transunion.com).
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