How Can I Get a Creditor to Accept Less Than Full Payment?

When you have outstanding debt that you can no longer afford to make payments on, the result can be very stressful. Creditors and bill collectors might be hassling you day and night to get their money. Even though you can't afford to pay back the full amount, you do still have some negotiating power. Creditors want to get something from you, so you may be able to get them to accept less than full payment.

Instructions

1

Figure out how much of the debt you can afford to pay. This might mean paying less than the principal amount or less interest over time. These are the numbers you will use during negotiations.

2

Call the creditor directly and make an offer. Don't start with your bottom line. There will likely be several rounds of negotiation. For example, if you want to pay 90 percent of the debt, start by offering to pay 70 percent. If you want to pay 5 percent interest, rather than 12 percent, offer to pay back the principal with no interest.

3

Ask to speak with a supervisor. The first person you speak with would probably reject your first offer and might not even have the authority to accept it. You need to talk with a supervisor.

4

Listen carefully to the counteroffer made by the supervisor. Legal terms might be used that you do not understand. Ask what the terms mean and make sure you understand everything being said.

5

Continue to negotiate with the supervisor. Once you get to your bottom line, such as the maximum amount you're willing to pay, stick to it. Do not give up. What you're offering the creditor is better than nothing. When a deal is finally made to pay less than the full amount, request it all in writing. Never accept terms until you get them in writing.