Ideas for negotiating with creditors
If you are facing sudden income changes such as reduced income or unemployment, you might resort to relying on your credit card for your daily expenses. This will shoot up your credit card debt and monthly payments and it may be harder to keep up.
Before the debt becomes too much to manage, you should set an appointment with your creditors, inform them of your circumstances, and negotiate for more manageable terms of payment.
Whether you are negotiating informally or in writing, you may try the following ideas.
- Request for a temporary suspension of payments if you believe your circumstances will change soon.
- Request for reduced payments over a longer period of time.
- Request for lower interest rates.
- Offer to pay a lump sum amount you can afford now, even if it is less than the amount you originally owe.
Your creditor may or may not agree to your proposed terms, but keep in mind that you won’t know unless you try. Be sure that you can afford the terms you will offer before you talk to your creditors.
For more ideas on negotiating with creditors, check this article from Money Help.