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Negotiate with Creditors

You may be able to negotiate with creditors. This may be possible only with unsecured debt. If bankruptcy is an option, creditors may also be more willing to negotiate. Generally it is easier to negotiate before the debt is turned over to a collection agency. Don't wait, if that is a possibility.

Negotating points:

*Lower interest rate

*No additional interest on debt

*No additional late fees charged to debt

*Refinance for a longer time period. Results in a lower monthly payment but you make that payment for a longer time.

*Give any collateral to the creditor. Get in writing that the loan is paid in full.

Can't negotiate with creditors by yourself? Find a reputable, non-profit credit counseling group.

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