People mired in debt often make a bee-line to the debt consolidation companies to take a chance at reducing their debts. And, these companies are clever enough to make their relevance known to you. If you get caught up in some wrong place, the situation will get worse. So, you need to be rational and prudent while deciding to take their services. It is not as if all debt consolidation companies are willing to take you for a ride. But, what you need to do is to try something on own to reduce your debt burden. One of these options is negotiating with the lenders personally. Listed below are some tips on how to negotiate with them:
1.Do not commit the folly of telling them that their rates are high and that is why you are finding it difficult to pay them. This way you will make them stick to their stand.
2.Do not lose your temper and do not be impatient. Rather, be polite and persuasive.
3.Be rational and tell them what makes you unable to pay your debts. Substantiate your claims with proper documentation.
4.Bring out all the monthly expenses that you do for daily living and how that is insufficient to pay the debts. This will also help in making them ascertain that you are not being extravagant.
5.Ask them to reduce their rates to more manageable levels since you are making the last sincere effort to reduce the debt burden. Convince them that you are seriously willing to pay off the loan.
6.In case that does not seem feasible, seek some ‘cooling off’ period.
7.You can also try to make the lenders factor in the costs of your default. And, try to convince them that if these costs are passed on to you in terms of the reduced rates, at least saving of effort and tension can be done by them.
8.If the payday loan lender is still adamant, do not feel guilty of defaulting on debt repayment because you tried your level best to reason out the situation with the lenders.
After trying out all these, you can choose to either take the services of a debt consolidation payday loan company or declare bankruptcy. The choice of the consolidation company shall be done after doing a thorough research into its way of working.

consumerfinance.gov – negotiate with a debt collector

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