How to Practice Debt Negotiation Skills

Learning debt negotiation skills may be one of the most powerful things you can do for yourself as a consumer. Though it can be tough to do it on your own, the good news is that with sincere effort at least some of your creditors may respond to your attempts at debt negotiation. When undergoing any nontraditional method of handling debt, patience and flexibility are important. Negotiating debt takes time, but it may well save you money and stress in the end.

Instructions

1

Start by calling your creditors and asking for a debt hardship program. If you are already behind on payments, they may be willing to work with you. Many credit card companies have these kind of in-house debt negotiation programs. Usually, a hardship program stops late and over-the-limit fees, reduces interest and sometimes trims minimum monthly payments. Keep in mind you will likely lose the ability to make new charges when in credit card debt negotiation.

2

Write a letter to your creditors if your telephone efforts are not successful. If you can only pay a certain amount per month, explain this. Even if you do not hear back, you may still want to pay what you can even if it does not meet the expected monthly payment. If you have extenuating circumstances that created your need for debt negotiation, do not hesitate to mention this in your letters.

3

Write a "Question" letter to your creditor via Planet Feedback. The website is noted in our Resources section below. Planet Feedback is a popular way to get in touch with those at companies who have the most decision-making authority, such as representatives of the company president or CEO's offices.

4

Write a letter to the collection agency for all debts already in collections. State that you can offer 50 percent of the debt as full settlement of the account. They may be more willing to work with you than your original creditors.

5

Consider consulting with a credit counseling agency, debt negotiation firm or possibly filing Chapter 13 bankruptcy if after months of honest effort you cannot reach acceptable agreements with your creditors. Chapter 13 bankruptcy enables a federal court to enact a payment arrangement plan on your behalf, but it should not be entered into lightly. However, if you are being sued despite your efforts to negotiate debts on your own, then you may need to consult with professional businesses or consider bankruptcy.