It is possible to control your debt, rather than have your debt control you. Take those reins. Be the one in charge. The first step is debt negotiation. You don’t know what it is, much less how to do it? Let’s talk about it.
Credit cards are great – at least for the first couple of swipes. Then you get the bill. Like most of us, you’re probably struggling with: How am I going to pay that bill? And so, you don’t. And the bill gets higher and higher. Until it’s so high that it’s overwhelmingly astronomical. The minute the bill becomes too much to handle, it is time to call on the expertise of a debt negotiator or consider any of the offers for debt consolidation loans. If you had never thought about calling in a debt negotiator, don’t feel alone. Most people don’t even know such a profession exists.
If you know about the profession and if you are ready to make the phone call, I’ve listed a few handy pieces of information that you should know:
1. When you call, you should have a list of the current amount you owe each creditor, as well as the interest rate that each creditor demands. Be honest. Unless you give the negotiator the correct information, he or she will be hindered during the negotiation process.
2. Keep your financial records. The money you spend with your credit card and the money you send to your creditors. These expense records will help you understand how you spend money. After all, it isn’t the creditor who got you into debt, but your spending habits. The creditor, merely, gave you a tool with which to bury yourself in your own debt.
3. Know that most creditors, including credit card companies, want you to be in debt. It is not in their financial interest to negotiate a settlement with you. However, most lenders understand that if they don’t negotiate, there’s a chance that they might not see any return on their money. After several phone calls, they usually give in to the notion of negotiation.
4. Don’t beat around the bush. If you want something from your debt settlement company, ask for it. The company will either be able to give you what you want or point you toward a company that can.
5. Follow your vision. It’s more than important stick to the agreement (between yourself and the debt negotiator). If you set up a payment plan with a creditor, don’t default or make a late payment. It doesn‘t look good for either the debt negotiator or you.
With all this good advice, you must remember that debt negotiation won’t keep you out of trouble forever. You MUST change your spending habits – no if, and or buts about it – spending got you into this mess; it’s time to redefine what spending means in your life. Hopefully, you can stay out of this mess.