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How To Negotiate In Debt Resolution

Updated on September 1, 2012


If you have debt or are having troubles with your debt management, you're not alone.  The problem for many is figuring out how not be overwhelmed by their indebtedness and how to go about getting out of it. 

If you're feeling the pressure of your debt and need to find a way to create a more stable financial environment, consider the fine art of negotiating your debt.

There are ways that you can free yourself from the chains of debt and here's how to go about it.



It never hurts to ask. If you don't ask or begin negotiations on your debt, you'll never get things in order....or at least it will take you an inordinate amount of time to get back to square one. By taking the initiative to call your credit card company or companies and begin negotiations, you have taken the first step to a brighter financial future.


Before you call, gather up some information as back-up. Look online and get some quotes from other credit card companies or loan companies and have some figures to back up your negotiation process. If you have credit card advertisements you've received in the mail telling you that you can get an interest rate lower than the one you currently have, keep it handy.

Call your credit card company (the number's on the back of your card) or companies and tell them you're having trouble with your account. Even if you've been paying on time, and you're feeling the pressure of not getting it paid off in a timely fashion, it's legit to ask for a reduction in the rate. It'll help you pay it off faster and release you from your indebtedness sooner.

Explain to them that you've made your payments on time or that you're a long time customer and you want a reduction in your interest rate of at least 2% below the national average. Back it up with the places you've researched...."XYZ Bank is offering this interest rate and I feel that I need to get my card debt down to this level in order to optimize my bills".

Be prepared to be refused - sometimes you'll get what you want without a fight especially if you can prove that you have other sources......or are prepared to close your account and switch to another lender. In a polite way, however, don't take no for an answer. If the person you're speaking to says that the rate is non-negotiable, ask to speak to a supervisor and begin again.

Most importantly, don't be threatening and don't be impatient. Be calm but be firm and just keep reiterating that you in fact want the rate dropped. You also want zero fees and if you aren't able to negotiate to have these removed and have the interest rate dropped, you will have to resort to transferring your account to a competitor. Be aware that you may just be shot down again but you won't know until you try.

Transfer your balance to another card company with the interest rate that you want and then call to close your account. You may discover that the original card company on having you speak with a "closure specialist" may now be willing to negotiate with you for the rates you wanted to keep you from closing your account. They will probably ask you to transfer your balance back. Now you have 2 choices instead of one!

Ask for any negotiated changes to be sent to you in writing - by email or by regular snail mail. Talk is cheap!



Call the credit card company and negotiate with them about a repayment plan.  Something of something is better than nothing of nothing after all. 

Be sure that you do pay what you agree to pay so make sure beforehand of the amount that you can truthfully afford. 

Ask that all and any agreements are put into writing - by email or letter. 

Sometimes paying off a lump sum of the balance is a negotiating point.  It does bring the balance down and may be a negotiable point in getting them to drop your interest rate on the remaining balance. 

Again, it never hurts to ask!



Always get the person's name and number and keep track of the entire conversation in a notebook. 

Date it and keep a record in the event that you did not get the interest rate as promised or the repayment terms begin to have penalties attached.

Negotiations can be a one-time thing or you can renegotiate again at a later time. 

Negotiating merely means that you are trying to get the best deal that you can possibly get for anything - in this case paying back your debt at a rate with which you can breathe and a rate with which you can live.  

Wishing you happy negotiations and success in getting your debt rate reduced!  It can be done!!   


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    • akirchner profile image

      Audrey Kirchner 7 years ago from Washington

      Siberblogger - thanks so much for the great addition to the hub with all your points to remember as well. They are all extremely good points and I have heard about that (since writing the article)....people having them sell off the debt and coming back after them.

      I totally agree that we should always get everything in writing before hatching any arrangement. Again, thanks so much for your well put remarks.

      And yes, that is in fact one of my malamutes - my young Griffin who is now almost 2 years old! Good eye!!

    • siberblogger profile image

      siberblogger 7 years ago

      A few other tips when trying to do your own debt negotiations. Be very careful on what you say. Remember when you fall behind on your bills the card companies have the right to bring you to court to try to recover their "losses" and though this is not common for them to do, it can escalate this process if you give them the idea you have something they can go after. Also avoid threatening that you will just settle with the other company who is "offering less" thinking it will make them buckle. It can often put them in the frame of mind that they will do what it takes to get their money first.

      Secondly, get everything in writing BEFORE agreeing to anything. Make sure that the offer mentions that the debt will be either considered paid or settled in full and that they will cease all further attempts to collect on the debt and that the remaining balance will not be sold of at a later date. There have been cases where a person settled with the creditor only to later be harassed by a debt buyer who bought the remaining balance a year later.

      All in all good hub and great information.

      As an added note that looks like a Malamute puppy you got there is that right?

    • akirchner profile image

      Audrey Kirchner 7 years ago from Washington

      Thanks chspublish. I agree totally - it pays to at least try and come out of it better than when you went into the crisis!

    • chspublish profile image

      chspublish 7 years ago from Ireland

      Negotiating and debt management is definitely the way to go for the concerns of those who are in the fall-out from the economic crises. Well done for your hub.

    • akirchner profile image

      Audrey Kirchner 7 years ago from Washington

      Thanks AJ for stopping by!

    • Apostle Jack profile image

      Apostle Jack 7 years ago from Atlanta Ga

      Good shop.