Debt Consolidation &
Personal Loans, Car Loans, Payday
Bad Credit Personal Loans
Debt Consolidation Bad Credit
of Secured Personal Loans
Get A Good Personal Loan
Many Credit Cards is Enough?
Get Rid Of Your Debts Sooner?
your credit card debt under control
Negotiation - Self Help Tips
Frequently Asked Questions
here: Homepage >> Debt Negotiation
Debt Negotiation - Self
When you reach the position where you can't afford your debt
repayments, it's time to take action. Instead of running from your
situation you need to take positive steps to fix it. If you reach the
stage where you canít keep up with the repayments, itís most important
that you contact your creditors as soon as possible and explain your
situation. It will help your situation as well as your credit rating
greatly if you manage to contact your creditors before they contact you.
This behavior on your part will show your creditors that you take your
situation seriously and have taken responsibility for the state of your
finances. It will further reassure them that theyíre more likely to
receive their money - albeit later.
Now this may be hard to believe, but your creditors wonít want to take
court action against you unless itís absolutely necessary.
Would you like to know why? Well first, all court action is time
consuming, costly and unpredictable. Itís generally a last resort, when
all other avenues have been exhausted.
Second, itís a question of mathematics. Itís just a simple commercial
decision. Most people would rather receive all the monies due to them
over a much longer period than originally agreed, in preference to only
receiving 20 cents in the dollar months later when the bankruptcy courts
get it all sorted out?
Bankruptcy should only be considered as your very last option.
Most lenders when offered a reduced payment schedule over a longer period
(with some reasonable explanation), will accept it. In most cases it will
allow them to receive more of their money back than the alternative of
Always best to contact your Creditors
As soon as you know you wonít be able to keep up with your repayments,
get in touch with your lender. Write to them explaining your situation,
giving them the reasons for your financial difficulties. Creditors will
often be open to negotiation, and dare I say it, quite helpful. They just
want to ensure that they get as much of their money back as possible.
Chances are they will be prepared to consider a more suitable repayment
schedule that will allow you to pay off your debts.
If you ignore your creditors, theyíll have you in court quicker than you
can say bankruptcy! Ignoring letters from creditors tends to make them
irate. Remember, they donít want to take legal action, unless your
actions force them to! But if your general attitude says to them ĎIím in
this position because I spend recklessly and have a cavalier attitude
towards my debtsí, they wonít have any choice. Furthermore if that is
their view of you Ė they will be less willing to negotiate with you at
Once youíve drawn up a personal budget and know how much you can afford
to pay towards your debts each month, contact your creditors and make
them an offer. Itís best to keep your offer of reduced monthly payments
as brief and precise as possible. But above all, make it honest and
This is good - ĎI would therefore like to
offer $15 per month to repay this accountí.
This isnít - ĎIím hoping that things
will get better over the next couple of months, so Iíll increase my
payments as much as I can at that timeí.
Lenders are unlikely to buy this sort of an explanation. Whatever
happens, when it comes to making an offer of reduced payments, don't
bluff your creditors. Honesty is the best policy.