Eliminate Debt: You Need To Know About Negotiating with Creditors

Nearly everyone finds themselves in debt repayment and cash-flow difficulties at least once in their lifetime. There are various ways you can reduce, manage and eventually eliminate debt.

Here’s how you can reduce debt by negotiating with creditors. This is just one of a number of debt elimination approaches you can take to get on top of your finances, eliminate all your debts and wipe your financial slate clean.

Everything in life is negotiable, even debt! Only one thing worries a lender more than not making profit and that is bad debts i.e. not been able to collect the capital amount lent (never mind the interest). You can renegotiate interest rates, payment terms, fees, penalties etc. Never take a payment demand at face value. Always negotiate with your lenders. Here are a few guidelines on how to negotiate with creditors.

Rule # 1 Do Not Avoid Your Creditors

Fear may tempt you to avoid lenders and debt collectors who demand payment. But you can really benefit from talking to them. Often, if you talk to your lenders, you can let them know you are doing your best to pay your bills, but are having difficulty making the payments demanded. You are now at least communicating with your lender. If nothing else, this gives you time to address your financial situation and takes the pressure off. Nothing annoys a debt collector more than unanswered emails, phone calls, etc. It is best to state your position with them early on and write to them explaining your situation and proposing a payment plan. (Read More)

Rule # 2 Always Focus on Getting Agreement

Some creditors will be more aggressive and demanding than others. However, no matter how much huff and puff your creditors exude, always keep your calm and stay focused on reaching an agreement. This is a critical rule in any negotiation. (Read More)

Rule # 3 Pay Only What You Can Afford to Pay

When negotiating an agreement with your lender(s) you would do well to devise a payment plan in advance based on your actual income and expenditure. Remember, this is YOUR repayment plan. Get agreement on your repayment plan and not their version of your repayment plan and get it in writing. Lenders will want to see an income and expenditure spreadsheet so have this ready. However, do not let creditors trawl through your spreadsheet demanding explanations. Be firm and tell them politely it’s none of their business really. You owe them money, nothing else.

Utilizing simple yet powerful debt elimination approaches like negotiating with lenders can really help you reduce and eliminate debt and put you on the road to real wealth creation. Find out more ways to eliminate debt and get on top of your finances at www.millionairemindsetsecrets.com. You can also sign up right now for debt elimination tips for free.