Jasz
VIP Contributor
Negotiating with your creditors is a great way to save money on your debt and avoid the headaches of late fees and interest rates that are too high. But it can be hard to know where to start, or what to say when you get there.
We've got some tips for you:
1. Know what your goal is. Is it to lower the interest rate (and thus reduce the amount of money you owe)? Or do you just want to keep paying off more of your debt over time? It's important to know why you're negotiating with each creditor individually.
2. Know how much time you have left before they'll report your balance back to credit agencies which can impact your credit score and ability to borrow in the future—and put you at risk for being sued by creditors if they feel they were wronged by someone who was trying hard not to pay them back! We recommend setting up an appointment with each creditor so that they can give you their current interest rate as well as their payment terms, so that when you go into negotiations, have all the information needed in order.
We've got some tips for you:
1. Know what your goal is. Is it to lower the interest rate (and thus reduce the amount of money you owe)? Or do you just want to keep paying off more of your debt over time? It's important to know why you're negotiating with each creditor individually.
2. Know how much time you have left before they'll report your balance back to credit agencies which can impact your credit score and ability to borrow in the future—and put you at risk for being sued by creditors if they feel they were wronged by someone who was trying hard not to pay them back! We recommend setting up an appointment with each creditor so that they can give you their current interest rate as well as their payment terms, so that when you go into negotiations, have all the information needed in order.
