How to Negotiate With Delinquent Home Depot Accounts

Many people use credit cards to enable them to buy things they wouldn't otherwise be able to afford. As a result, when times get tough, big credit card bills and loans provide challenges to a consumer's monthly budget. To maintain your credit score -- the evaluation tool that is used by banks, landlords, mortgage companies and lenders to determine your creditworthiness -- it is important to make payments on your debts and credit cards.

Instructions

1

Call the Home Depot credit department. Being proactive can go a long way in staying in the good graces of the company. If you have a solid payment record and are experiencing a momentary blip, discuss your options with Home Depot. This could include a lower interest rate or the ability to miss a payment without penalty.

2




Make regular payments on your credit cards.

Pay as much as you are able. If you can't pay the full amount owed make the monthly payments. If you can't pay the monthly amount make gestures that show your intent by paying what you can. This doesn't eliminate a "missed payment" from appearing on your record but does help reduce the amount owed and shows Home Depot you are trying.

3

Explore a consolidation loan with your bank or a financial lender. Consolidation loans allow you create one loan -- and therefore one payment -- rather than several, usually at a lower rate of interest and with a lower monthly payment. You may be required to cut up or terminate your Home Depot credit card to access this loan, but your debt will be paid in full.

4




Credit counseling can help you manage stress from debts.

Meet with a credit counselor. A credit counselor will work with you, and with your creditors, to reduce your payments and help you make a budget. Under the federal Credit Card Accountability Responsibility and Disclosure Act of 2009, Home Depot must include a number on your bill that you can call to access information about nonprofit credit counseling services.

5




Debt settlement lets you pay your debt for less than you owe.

Settle your debt for a lower amount. Use this option only if you have already missed several months of payment. Debt settlement enables you to pay a lump sum -- or a series of fixed payments -- to settle the debt for less than the total amount. While this does pay off your debt at a lower amount -- perhaps 30 to 75 percent less -- it affects your credit score. Your debt will show as "Paid by Settlement" on your credit records and future lenders may consider you a risky prospect.