Information, Links & Tips On Getting Out Of Debt

Debt Negotiation Technique

Are you behind on your bills? Learn an efficient debt negotiation technique before you call your creditors and start the negotiation.

  • Be civil, a rude conversation won't take you far.
  • Explain the reasons you are no able to keep up with the payments. (have lost your job, medical issues, working less hours, car problems,...)
  • Suggest possible solutions (refinancing the loan, reduction of interest rate, dropping of late fees, payment reduction, skipping payments and tacking them on at the end.
  • Try to negotiate towards the end of the month -- creditors want to start the fiscal month with their bill processing clean.
  • Ask your creditor to not put bad marks on your credit report
  • If possible, record all your conversations
  • Make notes and file all documentation for easy reference when needed.
  • Keep it businesswise, state all the facts and offer creditors something tangible to work on.

Before re-possessing your home the lender would usually try to help you by rewriting the loan, reduce payment amount, suspend principal payments for a time (you pay interest only), agree to a short sale, or even let you miss some payments to have you pay them over time.

If you need professional help to negotiate with your creditors, non-profit and low fee debt counseling organizations or consumer credit counseling services.

Consumer spending is what drives the American economy.

We use our cash, debit cards and credit cards to buy the advertised goods and services we see on TV, hear on the radio, and read on the newspaper and the internet. The average household in the US has 12 credit cards and charge cards with an interest rate of around 13% on bank cards. Others like dept. stores and gas cards have much higher rate.

If you are struggling with debt you are not alone. In today's economy, with a record number of jobs being loss, even the ones who have a job are forced to work harder or find a second form of income. The economic down turn is affecting everyone.

Will debt negotiation technique affect my credit negatively?

Yes. Your credit score will decline while in the program. It will improve once you have completed the program and all your debt is paid off.

How does debt consolidation work?

Debt consolidation is when you combine all your debts into one, lower interest rate loan.

Christian and non-profit debt consolidation services offer services such as:

  • Money Debt Management
  • Loss Mitigation
  • Home Equity Conversion Mortgage Counseling
  • Mortgage Delinquency and Default Resolution Counseling
  • Pre-purchase Counseling
  • Post-purchase Counseling
  • Homebuyer Education Programs
  • Marketing and Outreach Initiatives
  • Predatory Lending
  • Renters Assistance
  • Services for Homeless

National Foundation for Credit Counseling: 1 (800) 388-2227

If you have been defrauded as a consumer, contact the National Fraud Information Center NFIC at 1 800 876-7060. They offer help with filing a complaint with federal agencies, tips on avoiding being a victim, and info on recent fraud schemes.

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