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How to Negotiate With Creditors During a Divorce
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By: XSTILLA.COM
Going through a divorce may not only be emotionally draining, but also financially devastating as well. Luckily, it is possible to regain control of your finances and not succumb to debt during a divorce by negotiating with your creditors.
The first thing to keep in mind when dealing with creditors or collection agencies is to be polite and remain non-confrontational. Remember, it is their job to see that you are aware of your financial obligations, and it's your responsibility to see that they are paid.
If you find that you really aren't getting anywhere with the person you're speaking with, it's perfectly acceptable to politely request another representative, or to speak with a supervisor or manager. The key is to remaining calm and keeping your ultimate goal of becoming debt-free in clear focus.
- Be honest: There's no point in lying to creditors about how much you'll be able to pay, as the charges will likely grow even more once you aren't able to make the minimum agreed upon payments. Many times, a creditor or collection agency will agree to erase certain charges, such as over-the-limit fees or finance charges if you meet your end of the deal, or even agree to settling for half of the total amount due.
- Follow through on your promises: If you tell a creditor you'll be able to afford a certain amount of money each month toward your debt, prove your worthiness by sticking to those promises and remitting your payments on time each month and for the agreed amount.
- Make a consistent effort: In the event you aren't able to make a full payment, send at least something to show that you're making a consistent effort even when you've fallen short one month. Any effort on your part will say that you're still going to pay something, even if it isn't the full amount. Additionally, call the company and explain to them what’s happened rather than waiting for them to contact you.
- See a debt counselor: There are many debt counselors and organizations that can offer invaluable advice for how to negotiate with creditors, with many doing most of the negotiating and the wrangling with the creditors. Debt management companies, or consumer credit counseling services, as they are often called, can also set up a viable budget for you that's based on your income and expenses.
- Don't incur any new debts: When negotiating with your creditors, agree not to incur any new debts or open any new accounts. Not only will this prove that you're serious about paying off your current obligations, but it will also make it so much easier to achieve your financial goals in the long run.
If necessary, freeze any accounts that you are no longer able to afford or no longer have a use for, and make certain that your ex spouse's name is removed from anything you still are responsible for paying. It's always the individual's responsibility to see that all accounts are changed with their correct name and current addresses.
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