Remember that when you are negotiating with a creditor in an attempt to do personal credit repair, you are vulnerable to things going wrong if you don’t understand the terms of the new agreements you make. You need to make sure you can handle the monthly payments in the new agreement.

Don’t be embarrassed to ask for help from someone familiar with negotiating debt repayment if you are not sure what to do. This is better than ending up in a situation beyond your means to control. When you get on the phone with the company where you have an outstanding balance don’t be surprised if the initial response from the representative on the phone is negative. Ask to speak to that person’s supervisor if they say no – usually they don’t have the authority to make the decision anyway.

Credit Repair Companies

Make sure that when you agree to a new payment plan you stick to your guns. The creditor will inevitably ask you to pay more per month than you know you can do safely. Don’t let them talk you into paying more than you can truly afford.

If you can, find out the creditor’s bottom line – how low are they prepared to go? They might say they are willing to waive a couple months of interest on the account, so go ahead and ask them if they’ll accept waiving the interest for 3 or 4 months. All they can do is decline your request but it never hurts to ask. Pushing them a little can get better results.

One of the tricks a creditor will use is to pressure you to split the difference. Don’t agree to it. They will suggest you find the halfway point between what they want you to pay and what you know you can pay. Keep in mind it’s their job to get all the money from you as soon as possible. If you feel you have room to negotiate, then take their halfway point and negotiate somewhere between that amount and your original offer.

Don’t let your creditors bully you. They know how to push all your “guilt” buttons and leverage your emotional distress to make you squirm and pay more than you can afford. They will tell you they can accept a certain amount per month as the lowest payment because they are guessing you can afford that amount. They will use every tactic know to man to take you there. If you start to feel unsettled, hang up and call back another day. There is nothing that says you have to do this right now. Be sensible about negotiating and make the phone call when you have confidence.

There is a huge advantage to settling a debt with a lump sum. You can sometimes pay far less than the past due amount but you’ll have to pay it straight away. If you want to pay over time to get on track with your credit repair, they will insist you pay 100% of the debt.