5 Key Questions In Debt Negotiation

By Author: J.J. Yong
Total Articles: 962
Comment this article

Are you eager to get rid of your debt through negotiating with your creditors? If yes, I would like to share with you a useful FORMULA. Personally I call it as 4W1H formula.

Before starting the debt negotiation process, you need to bear in mind 5 key questions:

· WHY do you need debt negotiation?

First thing first, you need to be very clear about the main reason of bargaining with your creditors. It is definitely not for fun or just to obtain discount. The main purpose of doing so is to eliminate your total outstanding balances and become debt free as soon as possible, especially when you are facing financial difficulties. Some people bargain with their creditors to reduce their interest rates only. However, many people negotiate with their creditors to reduce their total debt.

· WHEN is the best time to negotiate?

The most suitable time to deal with your creditors is when your past due is more than 3 months. It is no point for you to contact your creditors if your past due is only 30 days. They will definitely reject your application as they don't ...
... see your disability of paying off the debt.

· WHO should you speak to?

Do you really know to whom you should speak when you need to propose your settlement offer? It is important for you to find out the right person who has the authority to make decision. In general, you should look for the manager or supervisor of the credit department if you need to settle your debt effectively.

· WHAT to offer?

Are you clear about your proposal? What should you offer to your creditors? Bear in mind that you need to be consistent in making your request. Don't change your mind every time you call up your creditors. You need to determine whether you want to reduce your interest rate or to waive all the late fees or both. You must assess your financial situation first before making your offer.

· HOW should you start the process?

Do you prefer to negotiate verbally or through settlement letters? If you decide to bargain with your creditors through phone, make sure you get yourself ready before calling. If you prefer to communicate through letters, make sure you write the formal letter in a proper way.

Last but not the least; before the whole negotiation process is completed, you are reminded to get an agreement from your creditors for the new terms approved. For people who have no idea about debt settlement, by following this simple formula, you are able to overcome your debt issues in an easy manner.
For more FREE do it yourself debt negotiation tips, visit http://DebtNegotiationTips.com