How to Make Deals With Debt Collectors

Debt is one of the worst things we can get ourselves into. The stress of debt is harmful to our marriages, our relationships, our work life and our health. Getting rid of debt seems exhausting and sometimes impossible, but it can be done. Use these steps to learn how to make deals with debt collectors to reduce or eliminate debt.

Instructions

1. Negotiate. Everything is open for negotiation. People are just afraid to do it. The same is true for your debt. Negotiate the interest rate, the monthly payment--whatever they will consider. This will save you thousands in the long run.

2. Change due dates. Some companies charge a fee for changing the due date on your account, but many of them do not. Ask to change the due date to avoid late fees and higher interest penalties.

3. Settle. If you are in a position to pay a large portion of a particular debt, you can often offer to settle for a lesser amount. Before proposing this, you need to have the "cash in hand" and be ready to pay, as they may only accept this offer once.

4. Ask for a deletion upon payment. This can't be done unless there has been a reporting error or other dispute. The company may tell you they are not able to do this. In this case, you should contact the original debtor to delete the account from your credit report. This will raise your score and not reflect that you were ever behind in any way. Make sure to get everything in writing and look for results on your credit report to ensure it deleted correctly.