How to Convince Creditors Not to Ruin Your Credit Score

When you’re barely keeping your head above the ocean of debt collectors, it’s easy to conclude that you’re out of options. The creditors want their money, and they need to get it on their terms – no matter what your situation may be. Luckily, we don’t have to always sing to their tune, even if we owe them money, and you are actually in a great position for negotiating a good deal.
Being able to find a solution that works for your finances is, in fact, what any creditor would prefer as well. It keeps you from getting back into trouble, and they avoid depending on false promises and unrealistic settlement or repayment plans.
Here’s how you can negotiate a great deal and get back to living your life your way again.
Understand your own finances
Before you pick up the phone, you need to have a clear picture of what you may be able to pay and how often you can make the payments. You may agree to restructure the payments, in which case you need to know how much you can afford to pay each month – keeping in mind that this will impact your future finances as well.
When you’re able to pay off your debt in a lump sum, you’ll be in a much better position for negotiating, and the creditors may agree to write some of it off. As long as they receive the amount you agree on as soon as possible, that is. You can potentially save a lot of money this way, so take advantage of the savings you have and write off as much as you can. 
Be honest when you negotiate, ask follow-up questions in case they threaten with further action such as law-suits, and ask if taking up another loan to cover the most pressing expenses will make them more likely to write the rest off. Have a look at right away so that you have a solution handy when they call. 
List the account to impact your credit score
When you’ve reached an agreement that suits your financial situation, it’s time to improve your credit score. The ultimate goal of this conversation is to make them list your account as ‘paid as agreed’ ‘account closed – paid as agreed’ or ‘current.’ 
Anything other than this may affect your credit score negatively, so make sure you follow up on the talk even if they don’t list your account as this right away. Read more on for more insights to debt settlement.
Remember that, when you’ve been able to pay off an amount of debt with a lump sum, you’ll have the upper hand and most creditors will be happy to follow your lead. 
Ask to speak to the supervisor if they deny any of your requests, and never agree to pay more than what you’re able to afford. By showing good-will and thorough preparations before negotiating with them, you’ll be in a much better position.
Keep in mind that it may take up to several rounds of negotiations before you reach the kind of outcome you’re looking for. Be patient, persistent, and continue to follow up on their phone calls. 

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