Originally posted 2010-02-07 05:29:18. Republished by Blog Post Promoter

It’s not difficult to carry out debt settlement negotiations yourself, but it’s quite often best to have a third party do it for you, and the best credit counseling agencies will often do it for you for a very low price.

There are lots of good, and even excellent debt settlement companies of course, but there are also a great number of bad, to very bad ones, and if you end up with one of those, you’ll not only spend a lot of money, but you might get next to nothing in return.

If you’ve already decided that the debt settlement route is the way to go, then I’d recommend either going with a BBB (Better Business Bureau) affiliated credit counseling agency, or doing it yourself.

The biggest problem that most people face when carrying out the negotiations themselves, is their mindset, and they often don’t understand that what’s good for them, is often not what’s good for the creditor.

Below Are 6 Pointers That Should Help You Negotiate With Creditors.

1) If you believe that you can bully a lender into lowering his interest rate and eliminating legitimate fees then you’re mistaken.

Despite what you might have read or heard, creditors aren’t required to help you, and the best way to deal with them is in with a calm, positive, and straightforward approach.

Do your best to create as positive an impression as you can, because it will bring about the best environment for negotiations.

2) Do your homework before you phone a creditor.

Try to see the negotiation from the creditor’s point of view, and write down all the questions that he’s likely to ask, and then think about all the possible replies. The worst thing that you want to happen during the call is that you become flustered or frustrated, and appear to be groping for answers. Be prepared to counter any unhelpful plan that the creditor suggests, but do so in a helpful and constructive way, and if you can offer any creative ideas that will leave the door open for future discussions, then so much the better.

3) Don’t expect the lender to be particularly sympathetic about your situation.

You got yourself into your present situation, and what you’re wanting to do will cost him money, and maybe a lot of it. Bear in mind that the person that your talking on the phone to has already heard every sob story in the book, and launching into yours will most likely just cause him to roll his eyes, and mentally disconnect. Stick to the facts and offer something tangible, something that makes business sense and will convince the lender that by helping you, he’ll be helping himself.

4) Try to negotiate as near as possible to the end of the lender’s fiscal month.

A fiscal month normally consists of full seven day weeks, and the most commonly used system by most companies is the 4-4-5 calendar. This means that the first two months of a quarter have four weeks and the last month has five weeks.

The reason for wanting to negotiate as near to the end of the month as possible is that most creditors much prefer to resolve outstanding issues before the first day of their fiscal month. It’s something which enables them to keep their bill processing clean throughout their bill consolidation process.

Don’t be in a hurry to play the bankruptcy card.

It might well force the creditor into making concessions, but it will also completely change the atmosphere from one of cooperation, to one of confrontation.

If the lender tells you to go ahead and file for Chapter 7, then you’ve most likely lost all chances of future negotiation with him.

Bankruptcy might of course be your best answer, but it will also destroy your credit rating for around seven years, and you should only consider it as a last resort.

6) Before threatening bankruptcy, it might be a whole lot better to remind the lender that the whole bureaucratic process of debt recovery is both time consuming and expensive, and mention that it most often leads to debt negotiation.

Tell him that you’re more than ready to compromise right now, and ask him to please reconsider. Suggest that perhaps it would be better to reach an arrangement sooner, rather than later.

The author of this article was a film producer, and award winning film sound editor for many years. One of his primary interests is economics, and one of his websites -> http://get-financial-help.org is for people with bad credit that need a loan. The cost of an extended list of lenders is extremely small, and anyone not getting a loan within 60 days gets a full refund.

Article Source: ArticleSpan

Filed under: Debt Collection Articles

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