Your Debts In Negotiations

Debt negotiation is one of the most underutilized tools in debt relief efforts today. Why? People either don't know they exist or are too afraid to pursue them. Although dealing with creditors is never something we want to do, a simple phone call can save you thousands and even keep you out of default.

How It Works

Debt negotiation is essentially a conversation that results in an agreement between you and your lender, which outlines a modified plan for your debt. In other words, you are arranging a plan to repay your debts in a way that suits your budget and keeps you out of delinquency. In most cases, debt negotiation can lead to a reduction in the amount owed, a lowered interest rate, and even a temporary suspension in payments for a short time.

When you enter into a negotiation about your debts you should know that your lender may not appear willing to work with you at first. This is normal. Your creditor wants to recoup as much of the loan as possible and minimize loss. Therefore, they may not be too open to help you at first. The key is demonstrating your financial hardship and proving that you are serious about debt repayment.

Closing The Deal

Too often people threaten their creditors with bankruptcy or act without preparation. Just like any good negotiator, it is important to stay calm and know what your plan of action is going in. First, review your financial situation and determine how much you can afford to pay each month. Next, consider what type of modification to your account is the most helpful. Do you need a short break from making any payment or would you rather have a lowered debt balance? Last, organize your paperwork and be ready to provide proof of your financial trouble to your lender.

When calling to negotiate with a creditor, skip the regular employee and request a manager right away. Explain your financial situation and offer to provide them proof of why you can't afford your payments. Provide the creditor with a possible solution to your debt troubles and even tell them what you can afford. Most of all, be flexible. Remember that creditors are not required to work with you, but do so out of a courtesy. Debt negotiation is a right, but securing an actual agreement is a privilege. Therefore, the burden of effort in on you.

The Lee Law Firm aims to provide local residents with high quality legal representation at affordable rates. Their attorneys specialize in all aspects of credit negotiations. As Dallas debt lawyers, the Lee Law Firm attorneys understand the pressures their clients face as they battle a financial hardship.

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