How to Negotiate Debt

If you are breathing, chances are you have some form of debt. Not all are equal, some people have hundreds of dollars of debt, while others have thousands. Although many people have been able to manage debt without trouble in this recession, others haven't. Here are a few of my own tips to deal with your current situation, and to hopefully help easy the tight budget many people are facing in these economic times.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Telephone
• Patience
• Current statements and creditor contact number.
• Pen and paper to take notes.

1. Review your current statement to ensure accuracy. Jot down any discrepancies in your bill and be ready to discuss.

2. Contact your creditor. Immediate ask who you are speaking with. Jot down that representative's name and date you called. Explain that you are calling because you are currently experiencing financial hardship, and wanted to see if the company had a special hardship program that could temporarily lower your monthly minimum payment.

3. If the representative says that no such program exists, ask what other steps could be taken to assist you. If you still do not have any luck, ask to speak to a supervisor and repeat the process. If a hardship plan is available and a reduced payment is accepted, be sure to have the representative clarify the length of this program and any consequences related to your credit. If you agree to the program, have the representative fax or mail you a copy of the agreement, including the reduced payment amount agreed, date the new plan will start and the length of the program. Keep all records in a safe place for future reference.

Tips & Warnings

• Always be nice to the representative. Getting in shouting matches will not help your situation, and many will be more willing to work with a pleasant caller.
• Remember to request all agreements in writing.
• Keep all items sent to you in a safe place for future reference.
• Be prepared to speak with a Supervisor if you are unable to get help with the representative.
• Many creditors have a hardship program, but will temporarily suspend your use of the credit card on the program, meaning you will be unable to use your card.
• Always ask how much, if any consequence a program such as this will have on your credit report.

[hyneman]

on 9/9/2009 So many people need to read this article on negotiate debt!! Good stuff! 5*

[sonni57]

on 8/31/2009 Great tips on getting rid of debt it has to be done.