Negotiate a Restructuring of Payments for a better credit score
If you are $5000 in debt and you are offered a $1000 settlement offer, you should do
everything humanly and ethically possible to raise the money and be done with it.
However, for whatever crazy reason you cannot come up with such an amazing settlement
offer, you should consider debt negotiation for restructuring your credit cards.
If your account is still with the original creditor, your goal here is to prevent your account
from going to a debt collector and having it reflect negatively on your credit report.
everything humanly and ethically possible to raise the money and be done with it.
However, for whatever crazy reason you cannot come up with such an amazing settlement
offer, you should consider debt negotiation for restructuring your credit cards.
If your account is still with the original creditor, your goal here is to prevent your account
from going to a debt collector and having it reflect negatively on your credit report.
The moment that you foresee that
you will experience a financial hic-up,
you should immediately take action to
protect your credit and contact the
credit card company by phone and
request a moratorium of your
payment due to your upcoming
situation.
By you initiating the call, the creditor
will consider this and will be more
willing to work out your debt.
Make sure that you explain to the
customer service representative that
you expect that your credit situation
will only be a temporary one and that
you only need a little help to get you
you will experience a financial hic-up,
you should immediately take action to
protect your credit and contact the
credit card company by phone and
request a moratorium of your
payment due to your upcoming
situation.
By you initiating the call, the creditor
will consider this and will be more
willing to work out your debt.
Make sure that you explain to the
customer service representative that
you expect that your credit situation
will only be a temporary one and that
you only need a little help to get you
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through this period of time.
The creditor may suggest that a moratorium be in effect for a two or three month period.
The creditor may also suggest payment of ‘interest only’ for a couple of months.
Either one of these credit options is a good deal under the condition that it does not reflect
negatively on your credit report.
However, do not, under any circumstances, agree to send post dated checks or pre-dated
checks.
If your debt is to far past due and is already with a collection agency, your payments
should be based on the condition that your debt is re-instated as current and that such a
status reflect on your credit report.
This may require a 15 to 20 percent down payment, with the balance to be paid in full in 6 to
18 monthly installments, depending on the total outstanding balance.
Do not hesitate to ask that any accumulated interest and past due fees be deleted from
your debt. They may or may not agree to this request but you should not miss the
opportunity to ask. It may just work out in
your favor and help your credit score.
Here again, it is extremely important when dealing with a collection agency, that you do not
under any circumstances agree to send post dated checks or pre-dated checks.
In either case, whether you are dealing with the original creditor or a collection agency, do
not over commit yourself to payments due to the pressure of the customer service
representative or debt collector. You will certainly cause more damage to your credit report
by not living up to the outlined agreement.
Finally, get all payment agreements IN WRITING. You should request to the creditor or
collection agency that they fax or mail you a written agreement outlining the new credit
terms.
The creditor may suggest that a moratorium be in effect for a two or three month period.
The creditor may also suggest payment of ‘interest only’ for a couple of months.
Either one of these credit options is a good deal under the condition that it does not reflect
negatively on your credit report.
However, do not, under any circumstances, agree to send post dated checks or pre-dated
checks.
If your debt is to far past due and is already with a collection agency, your payments
should be based on the condition that your debt is re-instated as current and that such a
status reflect on your credit report.
This may require a 15 to 20 percent down payment, with the balance to be paid in full in 6 to
18 monthly installments, depending on the total outstanding balance.
Do not hesitate to ask that any accumulated interest and past due fees be deleted from
your debt. They may or may not agree to this request but you should not miss the
opportunity to ask. It may just work out in
your favor and help your credit score.
Here again, it is extremely important when dealing with a collection agency, that you do not
under any circumstances agree to send post dated checks or pre-dated checks.
In either case, whether you are dealing with the original creditor or a collection agency, do
not over commit yourself to payments due to the pressure of the customer service
representative or debt collector. You will certainly cause more damage to your credit report
by not living up to the outlined agreement.
Finally, get all payment agreements IN WRITING. You should request to the creditor or
collection agency that they fax or mail you a written agreement outlining the new credit
terms.