Five Tips For Great Debt Negotiation

One of the scariest things about owing money isn’t that unpaid balance. It’s dealing with creditors. When you suffer with anxiety or any kind of issue that sees you worry about talking to authority figures, you can struggle and freeze up when it comes to negotiating with creditors to settle the balance. If a debt collector is constantly calling you about your balance, the last thing you want to do is actually talk to them, but it’s a necessity if you want to manage your debt in a healthy way.


Here’s a secret about debt collectors: they’re not to be afraid of. The aim of a debt collector is to get you to pay your debt, and because they buy debts for pennies they don’t necessarily need to recoup the entire debt that you owe. As such, they are always willing to negotiate with you so that you can pay less. If your debts have become too much and you owe the courts, you can get some help from Ryan Dove, a bankruptcy lawyer who can work with you to settle your debts with creditors and help you to do it in a way you can afford. Before you pick up that phone, though, you need to know how you plan to approach your creditors, and below we’ve got six tips to help you to successfully negotiate.



To The Point.

Your creditors aren’t interested in a sob story, but they are interested in knowing if you can afford to make your payments. Make sure that you are to the point about what you can afford and why you can’t pay the full amount but be truthful. A lie can easy bite you one day!


Stay Calm.

Creditors aren’t known for being gentle about getting money back for debts. You can get further when you keep your temper than if you fly off the handle and yell at someone down the phone. Always record your conversations and be as calm as possible.


Question Everything.

A tactic of debt collectors is telling you that you will be sued or you will be prosecuted for owing debt. When this happens, it helps to know your rights. Ask for the specifics of the lawsuit they plan to bring, and ask when they plan to garnish your bank account. Often, these threats are illegal; and it’s best to know what your rights are.


Take Notes.

Before you ring any creditors, keep a pen and notepad handy. You can note down the date and time of the call and any important tidbits of information that they give you during the call.


Ask For Proof.

If you have managed to negotiate a lower amount to settle a debt, ask for it in writing to confirm everything you’ve just discussed. This doesn’t mean that you shouldn’t record the calls, it just means that you have to have paperwork to back it up!


You can negotiate debts in a way that works in your favor, but get advice if you’re worried. The experts will always be there to help.