Debts & Loans

You may be able to negotiate a lower payment and, perhaps a lower interest rate. Your creditors may stop any additional late fees and over-the-limit fees. Once you’ve negotiated a payment schedule, stick to it and don’t miss a payment or try free debt consolidation. Follow the 5-step plan, reduce your spending, and make the sacrifice.

Don’t miss a payment or you will risk having the account placed with a collection agency. Negotiating with a collection agency requires a bit more tenacity since they will almost always demand payment immediately through an ATM deposit, wire transfer, and payment with another credit card or free debt consolidation.

Don’t do any of these as they can add additional and costly fees to your account. Be firm and polite and insist you will mail them a check. Don’t let them bully you into paying anymore than is stated. You’re not required to pay more. Ensure them that you want to pay off the account.

Negotiate with the collection agency just like you would negotiate with a creditor. By showing a genuine effort to pay, a mutually agreed payment schedule can be reached and the annoying phone calls can be reduced and/or eliminated. Now, if you’re like me, I hate negotiating with people. The last thing I want to do is haggle with a creditor over a payment schedule and interest rate.

Some people simply don’t have the tenacity or the patience to directly negotiate with people. In that case, it may be best to use a Consumer Credit Counselling agency. These agencies are typically non-profit organizations that offer a variety of services including: Budget counseling and education free debt consolidation plans Counselling referral services Financial literacy courses Housing counseling.

The primary service is debt management. These agencies will negotiate with your creditors and, in many cases, lower your monthly payment and reduce your interest rate. They can generally stop all late payment and over-limit fees. Creditors will generally accept the payment schedules offered by the counseling agencies since any failure on your part to pay will result in a resumption of penalties, fees, and higher payments.