Negotiate with your creditors if you find yourself saddled with credit card debt
By Jenney Roberts
The most common scene in the debt collection world is that you find yourself saddled with credit card debt and don’t find a worthy solution that can help you come out of it. When a debt collection agent dials your number, they’re mostly prepared to pull out all the scare tactics that they know in order to recuperate the money that you owe them.
They will put you on the defensive and make you pay the money that you owe irrespective of the financial hardship that you’re going through. You must be oblivious about the fact that the debt collectors are full of bluster and they don’t really have any legal muscle.
Standing in such a situation, taking resort to a debt settlement firm is perhaps the best way to forestall all the harassment that you may have to face when you’re in debt. Read on to check out the ways in which you can negotiate your high interest debts on your own.
- Prioritize your bills: No matter whatever way the debt collector threatens you, never start giving him money without prioritizing your bills. If you have a secured loan like a mortgage loan or an auto loan, making the monthly payments towards these loans are more important as in either case, your home or car is placed as collateral. Make sure you know the amount of bills that you have in a month so that you can easily make the payments in a prioritized way.
- Negotiate with your collectors: If you’re back on the monthly credit card payments, it is most likely that your accounts will be turned down to collection agencies who will be calling you throughout the day in order to take back the money. When you think of taking help of a debt settlement company, you must inform your collectors to wait and further negotiate with the debt settlement company.
- Write a debt negotiation letter: Most people are not aware of this option but it is important that you also provide your creditors with a debt negotiation letter through which you can appeal for a debt settlement. The letter must contain the exact reason that is barring you from making the monthly credit card payments on time. Also mention the exact amount of debt that you owe and the amount that you can pay after the debts are settled by them.
- Drive a tough bargain: The next step that you must take is to drive a hard bargain where you can benefit personally and also let the creditors gain a certain amount. Be prepared to be subject to various kinds of ill-conduct by your creditors as they’ll certainly want you to pay back the entire amount.
When you opt for debt settlement on your own, it is very necessary for you to know the rights that you’re entitled to. The more informed you are, the better way your money will be protected. If you see any kind of illegal behavior by your creditors, immediately report to the FTC or the Federal Trade Commission.
Copyright © 2011 Halfmoney.com