Credit and debt counseling has become a booming business over the last few decades..
For many people, their most important dream is to own a home...
If you have amassed a rocky credit history and if you are burdened with a low credit score


Negotiating Strategies for Existing Debt with Creditors

If you have found yourself drowning in debt, if you have bad credit, you may have reached a juncture at which you want to begin negotiating with your creditors in regard to your existing debt.  With that understood, you may not know exactly how you can go about negotiating with your creditors about existing debt.  Through this brief article, you will be provided with some basic information about negotiating strategies for existing debt with current creditors.

Prioritize Your Debts

The first step that you need to take when it comes to developing strategies to deal with existing debt with current creditors, you must first prioritize your debts.  If you are working to repair bad credit, it is important for you to appreciate and understand that not all of your debts effect your credit history in the same manner. 

By prioritizing your debts, you will be able to list which creditors you will want to deal with first, that you will want to negotiate with initially.


 


Set Out Your Goals and Objectives for Each Creditor and Debt

The next step that you will need to take in regard to developing negotiating strategies for existing debts with current creditors is to determine your goals, objectives and boundaries in regard to each debt.  You need to set forth precisely what you will be willing to do and accept in regard to negotiating with each of your individual creditors.  You need to set forth the bottom line of where you are willing to go, how much money you are willing to spend when it comes to dealing with a particular account.

By establishing what your boundaries will be when negotiating with your creditors, you will not be unduly persuaded into making a settlement or entering into some other resolution or agreement that is not what you had in mind and is not in your best interests when taken in light of your other obligations.

Talk to Someone in Authority

While it can be challenging in some instances to get beyond frontline phone staff when you are trying to make contact with a creditor, you must do so -- absolutely.  99 times out 100 (if even that) frontline customer service staff do not have the authority necessary to make any significant decisions regarding your account.  Unfortunately, in this day and age, these frontline staffers tend to be combative and argumentative when they end up dealing with someone that desire to dispute something or to try and negotiate and settlement.  Anything beyond taking a payment seems to be a foreign concept to them despite the fact that they likely have marching orders to work to handle both disputes and negotiations at least to a preliminary degree.

By following these suggestions, you will be on your way to taking affirmative steps towards resolving problems with bad credit.