Aug 30th, 2010 | Written by daniel | Posted in Debt |

There is a time when we need to dig deep, make some extra money, and pay our entire behind payments on our credit cards. However, there is a time where mathematically this will not happen. Before you file bankruptcy you should consider credit card debt negotiation. Here are some tips to help your bargaining go smoothly and end up a win – win for everyone.

The first tip is to remain calm. The collection companies will often use scare tactics to get you to pay them first. If you lose your temper during debt negotiation the professional collector will stop considering counter offers because they believe they are wearing you down emotionally. Remember that it is just numbers and they have no right to persecute you. In the Unite States debt is not a crime.

The next tip to start significantly lower than the cash you have available to pay. You want to work your way up to your settlement point. If you start too high you’ll never come back down. If you have the cash for 50% of the debt you should start at 25%. Always negotiate only with the cash you have available right now ready to send. Credit card collectors generally won’t consider money you’ll soon be getting because those have a high failure rate.

The last tip is to remind the credit card company each time negotiations fail is that they are low on their list and the first company to accept the offer will receive the money and they will have to wait until the next time you can save up any money. They may sue if they like, but you will just bankrupt out if they do. The choice is theirs. Odds are they would rather take the settlement than waste the money in court and lawyers for no return.

Debt negotiation isn’t a right, it’s just good business. As long as you can explain to the collector that it’s in their best interest to settle they most likely will. As the old saying goes, “A bird in the hand is worth two in the bush.”

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