If you are currently struggling with debts that you are no longer capable of paying, then debt negotiation could very well help you catch up with your payments. Debt negotiation is a process whereby you or a professional debt negotiator speaks with your creditors in order to negotiate certain areas such as your interest rates, the fees being charged, or simply a new repayment plan. By using this method, you can reduce your debts significantly and help you get back on track with debt elimination. A professional debt negotiator may provide you with more input and advices, but it doesn’t mean that you can’t do it alone. If you really don’t have enough extra money to pay for their services, then you can give this method a try on your own. Below are some advices that are good to keep in mind when trying to negotiate debt on your own.

Be knowledgeable of your debts.

Think of debt negotiation as a debate; before you start a debate with another party you need to make sure that you know enough of what of you are fighting for so that you will be able to convince the other party to side with you. The same goes for debt negotiation; you need to equip yourself with knowledge of the type of debts you are faced and with the contract that you signed with your creditors. This way, when you present your proposal to your creditors you will be able to answer back any query or concerns they may have with your debts. You have a much better chance of coming up with a great proposal and be able to reduce debt in the process.

Have a goal in mind.

When you negotiate your debts, you need to have a set goal in mind. Think about how much you actually want to be reduced from your debts, or are there any fees that you want waived, how much of your interest will be reduced, or what will be reflected on your credit report. Be exact with your goals and keep them high so that in case your creditors negotiate with you as well you will have enough to work on.

Do not be intimidated.

The thought of talking with your creditors can indeed become a very daunting task for anyone. However when time comes that you have to face your creditors and begin with the negotiation, you should never show that you are intimidated by them. Chances are when you’re intimidated you lose your confidence and you won’t be able to raise all of your points and explain them well.

Put everything into writing.

As soon as you score a deal with your creditors, it is very important that you put it into writing. Make a formal contract and put all the details of what both parties have agreed upon, then have them sign it. This will help ensure that they will keep their end of the deal and will also remind you to keep yours.