If you’ve been struggling with finances recently, you know this can be very stressful. You may feel like you don’t have many options, but you probably do.
One thing you may want to consider is negotiating with creditors. This can take time, patience and preparation, but it is often worthwhile. Outlined below are a few tips that could help you during this process.
Make sure you are speaking with the right people
If you have only recently found yourself in debt, then you may be dealing directly with your creditor. However, if the debt has been outstanding for some time, they might have passed it onto a third-party debt collection company. The two can be very distinct, with the latter typically being much more interested in settling the balance than negotiating.
You probably have a better chance of negotiating with the creditor directly, so ideally this is who you want to talk to. That’s not to say that negotiations with debt collection agencies are off the table completely. They just might be a little more tricky.
Get the paperwork in order
In any negotiation, you want to have evidence close at hand. In terms of debt management, this includes letters that you have received from the creditors as well as anything that can show why you have fallen behind. For instance, if you are ill and unable to work, you could provide medical documentation.
Don’t allow yourself to be taken advantage of
Typically, creditors will want to negotiate because it means they get something rather than nothing. You should never feel bullied, harassed or criminalized simply for struggling with money. Having legal guidance behind you will help you to come up with a solution for you to deal with your debt.