How to Negotiate a Successful Agreement

Embroiling yourself in a lawsuit can quickly turn into one of life's most expensive experiences. Between lost time from work and attorney fees, many litigants see the price of being right quickly exceed what they would have paid out in a settlement. This is not to say that you should accede to every demand, however; employing smart negotiating principles can lead to the achievement of an agreement that will be satisfactory to both parties.

Mind Your Manners

Although negotiations can sometimes become heated, maintaining civility is key if you wish to reach an acceptable resolution of any debt or problem. A creditor, attorney or settlement agent will always be more likely to go to bat for you with his clients or superiors if he has a positive impression of you as a person. Look at it this way: Who is it more fun to hang up on, a screaming bill collector or one who tries to be your friend? Be firm in your position and don't be afraid to advocate for yourself, but avoid yelling and profanity -- even if the other side doesn't.

Show Your Best Cards

Just as trial by ambush is disfavored in the civil procedure code of every state, it should be disfavored in your negotiations, as well. You will gain nothing by hiding your strongest points from the other side. While ambushing an opponent -- especially a mouthy collection agency -- may feel great, it makes no business sense to hold back evidence that could convince the other side to settle with you. If you really want to negotiate a successful agreement, don't just tell the other side how strong you are; show them.

Keep Your Promises

Any agreement you reach with the other side in a negotiation boils down to a promise by both sides to do or not do certain things. As such, credibility of the parties is key. When you tell an attorney, creditor or agent that you will do something by a certain time, do it. Call when you say you will call, produce documents by agreed-upon deadlines and return forms and questionnaires as agreed. Consider how the other side can trust you to live up to a negotiated agreement if you can't even honor a simple deadline.

Be Willing to Walk Away

While working together toward a mutually acceptable compromise is critical to negotiating a successful agreement, your negotiations may reach a stage where you can concede no more. You may find yourself unable to maintain your self-respect if you give in beyond a certain point, or your capabilities and finances may fall short of the other side's best offer. When you have reached that place where you cannot give any more or accept any less, be willing to walk away from the table. A successful agreement is one that each side can live with even if they want more out of the experience than they're getting; if you can't deal with the other side's best offer, sometimes walking away is the only option.