You would think that with the banks upside down along with the rest of America’s economy they would be more understanding. You would think they would be sympathetic to their customers who are now facing debt, credit and home ownership issues. It cost nothing to ask for different terms, but like any proposal, it’s how you ask that can make a difference. Write, ( not call) your creditor with an offer that hopefully he won’t refuse. Your offer will be made in the form of a written negotiating letter, basically inviting the creditor to join you in a game of “Let’s Make A Deal !”
Since you are the one offering the ‘deal’ you want the terms to be something you can live with over the life expectancy of the loan. Similiar to a ‘hardship’ letter, you want something different than what you have, and you want them to meet all your terms or at least half way. Your goal is position yourself to be able to continue meeting all your responsibilities through this time of transition.
Your negotiating letter is basically 3-4 paragraphs that tell your story that created the problem, the actions you are taking to resolve the issue, and finally your terms that you will be able to live with for the next 3-5 years. These elements are as follows:
- WHY – is the reason you are unable to fulfill your obligation, and.
- WHERE – your mind set, and commitment level is, and
- WHAT – your plan of action is that will end their problem, and
- WHEN – you will start making timely payments and end this agreement, and
- WHO – will be helping you achieve this goal, such as a debt, credit counselor, teacher in new education, etc.
- HOW- is your terms including the request that they remove all negative comments from your credit history. And that they do not telephone you again over this account, but to keep all communications by mail.
Spectrum Resources in research and our continuing education sees many negotiating services available to people for hundreds of dollars. Our suggestion is that you try negotiating on your own with a written proposal. Then if all else fails, hire someone to write negotiating letters for you.
Help Us Help Others with a tax exempt donation to our financial education fund. Our fund raiser is a book on daily money managent from local author Jan Shore titled “Hey ! Where’s My Money ?” for a $10.00 tax exempt donation.
Use the online check processor www.Checkman.com/pay4it/12985 or pay by money order mailed to: SRDC 2014 Brentwood Dr. Auburndale, FL. 33823