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Posts Tagged ‘Negotiation’

What to Do If a Creditor Will Not Renegotiate the Terms of Your Agreement

One of the options you have when you can’t pay an outstanding debt is to renegotiate the terms of your agreement directly with your creditor. You might choose to do this before the account goes to collections so that the incident doesn’t go on your credit report and negatively affects your credit rating. Some creditors are willing to renegotiate the terms of the agreement when they feel confident that you will, in fact, pay off the amount owed as quickly as possible.

Remember that creditors have to pay a collection agency a fee in order to collect on your account, and it is actually much easier for the creditor to come to an agreement with the borrower and close out the account. Unfortunately, some creditors will refuse to renegotiate and will insist that you either pay your debt in full, or your account will handed over to a collections agency. Here’s what you can do if this happens to you:

Send a letter stating your terms clearly. Be very specific about how much you can pay, and when you will be able to pay it. Write a thorough and professional letter that states your request, and give the creditor a time frame to respond. Be as direct and professional as possible about the offer so that they know exactly what to expect. Give them an offer that they can’t resist , emphasizing the fact that you can pay the new amount in full at a proposed date. Some creditors may be more likely to renegotiate when they have a formal confirmation of the specific dollar amount and date it will be paid by in their hands.
Follow up. If you don’t hear back from the creditor after sending your letter with the proposed settlement, don’t be afraid to follow up with another letter or a phone call. Do everything possible to let them know you’re serious about your offer and are ready to close out your account by a specific date. The creditor can either: ignore your request, agree to the offer, or send back a more acceptable offer. The key is to keep the communication going so that you have a chance at negotiating.
Work with a debt settlement agency. Legitimate debt settlement companies may be able to negotiate with a creditor on your behalf, but it can be tricky to find a company or consultant you can trust. Remember that there is a difference between a debt settlement company and a credit counseling agency. Credit counselors will get paid by the creditor as well as from the client. Do your homework to find a debt settlement agency that can help you negotiate better terms with your creditor if the balance is high enough to justify the cost.

How to Renegotiate the Amount You Are Paying to a Collection Agency

Author: The Money Coach

Dealing with a collection agency can be stressful. You need to flex some negotiating skills in order to work with debt collectors and if
you’re on a monthly payment plan, ensure that every single payment gets to them on time. Remember that a single missed payment could change the financing agreement and you could end up paying extra fees.

Whenever possible, it’s in your best interest to negotiate a lump sum payment instead of maintaining a monthly payment schedule. If you want to cancel an automatic payment to a collection agency, you will need to request a “stop payment” from your bank and pay the appropriate fees. Remember that the collection agency will need an explanation on why you are stopping payment, and you may need to negotiate a payment plan with them.

Here are some tips for renegotiating the amount you are paying to a collection agency:

#1: Don’t believe that your wages are automatically going to be garnished.

Debt collectors often use this as a scare tactic to get you to pay the entire amount as quickly as possible, but the reality is, they will need to take you to court first before your wages could be garnished. If you haven’t received a court letter, it’s probably not going to happen. Don’t let the debt collector use fear to prompt a payment!

#2: Send a letter of your request.

Avoid talking on the phone as an exclusive way to confirm a negotiation. An agreement made over the phone may or may not be valid, so you will need to make sure you have everything in writing. Send a professional letter stating your intent to pay an agreed- upon/negotiated amount, and keep a copy of all correspondence as things move forward.

#3: Offer a lump sum payment for the new amount.

Some collection agencies may be willing to renegotiate when they know that you will actually pay the proposed balance. Remember that it’s in their best interest to settle as many delinquent accounts as possible each month. If they can get you to pay and close out your account – even if it’s for less than the original balance – they will still be making a commission. If you can feasibly make a lump sum payment to clear up your account balance, make an offer they can’t refuse and follow through with the payment.

#4: Consider a counter offer.

Remember that the collection agency does have the right to refuse your offer, but they may also come back with a counter offer. Start your offer low – perhaps offering 25 cents on the dollar or so – so that you can consider a counter offer as the negotiation process
continues.

#5: Request a written receipt of payment.

If you do agree upon a lump sum payment account or have successfully renegotiated the outstanding balance, make sure you have
everything in writing. Check your credit report within a few months of making the payment to make sure it’s been cleared from your credit history. Keep copies of everything that shows your balance is paid in full so that you have something to show a future lender.

How to Negotiate With Creditors – One Hour Audio Download

Author: The Money Coach

There comes a point in most people’s lives when they slip up with their credit cards. Maybe you forgot to pay a bill on time and got hit with a late fee. Or perhaps you fell on hard times, and got several months behind on your debts. What should you do when you want to re-establish your good name, pay off debts, and improve your credit standing? Chances are, you’ll have to negotiate with your creditors. Negotiating with institutions you owe is more art than science. But there are some proven negotiation strategies and techniques you must know in order to save yourself hundreds, if not thousands, of dollars.

In this session you’ll learn:

What re-aging is, its benefits, and how to get a creditor to re-age your account
How and when to ask a credit card company to un-rate your account
How to legally buy time paying a bill or possibly even eliminate the need to pay the debt
How to avoid over-the-limit fees or have them eliminated
How to get interest rates lowered
How to get late fees waived and late payments removed from your credit file
What requests to make over the phone and when to send letters to your creditors
Why it may be smart to get the due date on your credit card changed and how to do it
The 5 times you should ALWAYS pick up the phone and call your credit card company
How to protect your credit rating when you don’t pay a bill and MORE!

Length 60 minutes
Download Now for $5.99

Ask The Money Coach

Posts Tagged ‘Negotiation’

What to Do If a Creditor Will Not Renegotiate the Terms of Your Agreement

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How to Renegotiate the Amount You Are Paying to a Collection Agency

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How to Negotiate With Creditors – One Hour Audio Download

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