debt options

Aware of your options before renegotiating a debt

Article Written by  : Invisible Insurrection

Many of us are burden by heavy debt load. There is not enough income coming in every month to pay down the debt. Extremely high interest rates are making it more difficult for many to make a dent in their unpaid credit card balance. If these situations are similar to what you are facing every day, there are ways to deal with it. One of many available options is to renegotiate with the debt issuer. Before you start to renegotiate your debt payment do your homework. Find how that particular debt affects you such as what percentage of your income requires you to pay the debt. Also, how much theoretically you can afford to pay.

You can negotiate for a principal reduction, interest rate reduction, reduction of the monthly payment, a lump sum settlement (if you can pay off debt in one payment), late fee reductions or combination of all of these. Once you contact them expect for the worse. If you can’t get at least some relief start going up the chain of command by talking to next level each time you get a refusal. Once you reach your goal get it in writing for record keeping. Honor the deal by making prompt payments.