Can I negotiate debt with creditors?? help?

Question

I have a line of credit for 28,000 w/ a minimum payment of 502. I just had a son and my husband lost his job and his new job pays less. We are now in at a point where daycare is going to run us over 500 a month which equals the payment to the creditor. It's pay the creditor or pay daycare..and daycare of course is going to win b/c we have to work. We have not used credit in over 6 months and are trying to stay away from that to pay off debt. So.. my question is, I have never missed a payment but have only had this line of cerdit for 6 months.. can I call and negotiate with the creditor to try to work something out? How do I go about this? I have tried before and have been given the run around so I want to go at it the right way and speak to the right person to get help. I WANT to pay this debt.. that should speak for something right??

Answer 1

When I was in almost the same situation I called customer service during business hours ( you are more likely to get someone who has been there longer and knows more if you call then ) and explain your situation. Most of the time what they will offer is to close the account so that no more intrest is calculated and then you have a flat ( most of the time lower) fee that you pay each moth until you have paid it off. When you call if they do not offer this, ask if this is something that they do. Some companies have things like this available but they will not tell you about it because they want you to have to pay interest. Also, anytime you come into extra cash ( like income returns) pay toward the balance. Best of luck.

Answer 2

You should try to renegotiate the line of credit to extend the period of repayment.  You will probably end up with a higher interest rate and lower monthly payment  and end up repaying more over the period of the loan but at least you will get the temporary relief that you need without damaging your credit.  I'm not sure why your creditor would give you the run-around.  They want to get paid and restructuring the loan may be the only way that they can get paid.

Answer 3

I would advise you to join a debt negotiation plan provided by debt consolidation company. As the are specialist in that field and more often they know your creditor and so they can negotiate and reduce more as compare to if you negotiate.

A debt settlement plan also known as debt negotiation plan mainly involves negotiations with the creditors to reach a reduced payoff balance on debts and that cuts total debt of an individual, sometimes over 50%, with lower monthly payments.

Here is the source of a debt consolidation company named http://ezconsolidation.com for your reference.

Answer 4

You can probably try to negotiate the interest, or maybe see if you can pay a lower minimum payment, but you won't be able to negotiate the debt itself.  You may need to talk to a debt consolidator, or a creditor counselor or a lawyer to see if they can help.