Simple Tips to Negotiate Credit Card Debt

This is a guest post by Kevin Craig who is a financial writer. He has helped lots of debt burdened people with free counseling and advices on many finance related topics.

Debt has become a severe issue in America and people are looking for ways to come out from its trap. The easiest way they find to eliminate their existing debt is by filing bankruptcy. They tend to overlook the negative impact of filing bankruptcy as it not only ruins your credit report as it hovers on it for 7 to 10 years but also your financial career. The employers avoid giving jobs to bankrupts as the filers’ reliability is questioned.

Therefore it is advisable to find other alternatives to bankruptcy for instance debt negotiation or debt consolidation. This negotiation program helps to eliminate debt by making the outstanding balance as well as the interest rate affordable for your pocket so that you can pay off.

The following tips would show you ways to negotiate with the creditors to lower your debts without the help of a professional in order to achieve a debt free life without ruining your financial career.

Effective ways to negotiate with the creditors:

1) Acquire knowledge on the pro consumer rights:

In order to negotiate with the debtors you need to have enough knowledge about the rights enforced by the government. Federal Trade Commission has introduced Fair Debt Collection Practice Act to safe guard the rights of the consumer. This Act helps to negotiate with the creditors and can put an end to the unfair collection practice of the creditors.
If you are well accustomed with the law then it would be easier to negotiate with the creditors. On being aware of the pro consumer rights and law implemented by FTC the debtors can avoid the harassing threats of the creditors. If the debt collectors violate the law then you can lodge a complaint against them at the attorney general’s office. You can get a good deal by threatening the creditor to take legal action against the creditor.

2) Record the conversation with the creditor:

Make sure that you record the conversation with the creditor so that it can act as evidence if you can plan to take any legal action against him. Inform the debt collector that you have recorded the conversation then you can negotiate with him on your terms. In this way you can avoid the abusive calls of the creditor as he would know on violating the Act he might be in severe trouble. Keep a track of the collection calls and also maintain a record of the collection letters.

3) Maintain a document:

You need to maintain a note of the following things:
A) Time and date of each collection call
B) Name of the collection agency
C) Collection agent’s name and employee registration number

If you need justice against the malpractice of the creditors then you need to maintain evidence that would act as a proof before the attorney general’s office.

Keep a written agreement of the payment plan: If you have managed to negotiate a payment plan with the creditor then ask him to give in writing that he has agreed to the repayment amount. If he gives you a detail description of the payment plan then he can’t dissuade from the terms of the amount decided by you even if he wants to.

If you are sending the creditor the detail of the payment plan then try to send a certified letter. You would add credence to the letter by sending a certified mail. As the creditor receives the letter you would get a receipt of it. Keep a copy of the letter and the receipt.

4) Threaten him of filing bankruptcy in order to negotiate:

If you inform them that you are planning to file bankruptcy then he would take initiative to negotiate on the outstanding balance as well as on the interest rate. As he would be aware that if you declare yourself as bankrupt then he won’t even get a penny that he can get after negotiation. Therefore he might agree on the terms of your negotiation.

So these are the few effect ways to negotiate your debt with your creditors. Follow the steps and achieve a financially secured future.

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