Things to do Before and During Your Debt Negotiations
While the process of negotiation can be difficult, you can do a few things to make the process go more smoothly if you're considering going it alone. Here are some general rules to follow when starting debt negotiations.
- Don't come across as desperate with the credit card companies. If they sense you are desperate to settle for anything less than the full amount, then the offer they make might not be as good as it can be.
- Keep good records during the process. Send letters to the credit card debt companies and make sure they are registered. An agreement on the phone is great, but it's not worth much until you have it in writing.
- Track all phone calls related to your settlement case.
- You can speak to the credit card companies on the phone, but don't speak with collection companies over the phone during the negotiation process.
- Keep track of your debts that were sent to collections. These companies have been known to overcharge debtors with absurd interest rates. Most states have laws that make this illegal, but many collection companies do this hoping that the debtor isn't educated about their rights..
- The longer you have been in debt the better when it comes to settlements. Credit card debt companies are far more likely to negotiate with people who have been in bad debt over a period of time. If you are just a month behind in your payments they will probably not talk to you.
- Drop hints to your creditors that you may have to declare bankruptcy as this will set off warning signs with the credit card companies.
- Don't make any large purchases until your debt is negotiated.
Following these simple guidelines should help make the process easier should you decide to negotiate with your lenders directly.
