USAinDebt

If you have read the first two parts of the “Getting Out of the Debt Hole” series by now you should have figured what you owe, what are your monthly expenses and approximately how much your debt costs you per month. You You should also have reduced your spending and optimized your costs of living

Your next step in dealing with debt is to negotiate your rates with your creditors. Now that may sound impossible but you may actually be surprised that some lenders are willing to work with you.

So, open up your “accounts file” and start calling. Make sure to write down the names / numbers of representatives you speak with , you may need them for future reference. Be polite, explain that you are facing some financial difficulty and ask them to help you out by lowering your APR. You may encounter a stubborn rep who won’t be willing to work with you - then just call again, and if you don’t have any success the second time, ask to speak with a supervisor. They are usually authorised to make such changes to your account. If you are still unable to lower your interest at that point, you can bluff a bit and try to convince them that you are about to close your account or consolidate it. You can also ask directly to be transferred to the retention department, which usually handles cancellations - that should put the red light on and you are most likely to get what you want. I have worked in a company that had it’s retention department representatives trained to handle customers that wanted to cancel service - 95% of the calls were transferred back to me after they bribed the customer.

Calling your creditors will take you probably an hour of your time but it can save you a lot of money. Don’t be afraid to talk to them it won’t hurt you if you try!

Tags: debt | finance | money management | apr | creditor | lender | negotiate | rates | retention