The ability to negotiate is a skill that most of us are born with. If you doubt you were ever a skilled negotiator, think back to the sort of deals you were willing to cut in order to stay up past your bedtime or get something else you wanted when you were a kid. If you are anything like the attorneys at our firm, you would have volunteered to do the dishes for the next month if it meant staying up an extra 15 minutes on Sunday evening.
Unfortunately, as we get older, negotiating becomes a task we dread, especially when we have to negotiate things like debt. Just hearing the word negotiation probably makes you think of a high-pressure car salesman or that vendor you tried to haggle with at the 7 Mile Fair.
It is time for all of us to take a step back to the days of our youth and embrace negotiation as a valuable skill. At Hanson & Payne, we often use debt negotiation skills to help our clients avoid filing for bankruptcy.
The First Rule Of Negotiation
The first lesson of negotiation is one that you understood as a kid — identify something you have that the person you want to negotiate will value. When you were a kid, it was various chores. For creditors, the thing they value most is getting paid, the sooner the better.
Debt negotiation typically involves offering your creditors a lump sum payment now if they will agree to reduce your overall debt load, decrease your interest rate, lower your monthly payments, or some combination of all of these.
The best candidate for debt negotiation will have a sufficient cash supply to grab the interest of the creditors, who generally want a single lump sum down payment on the negotiated debt, followed by smaller monthly payments until the negotiated debt is paid off.
If you are a plaintiff in a personal injury action (ex. car accident or medical malpractice action), we may be able to structure a debt repayment plan funded by your award in the personal injury action.
If you would like to refinance your house to raise sufficient funds to pay your creditors at a discount, we can put you in touch with finance companies that do not charge the painful interest rates most finance companies offer to people who have debt issues.
Negotiate Your debt with The Threat Of Bankruptcy
Don’t have the cash to make a lump sum payment? Think back to your childhood negotiation tactics. What would you do if your parents wouldn’t let you do more chores in exchange for what you wanted? Resort to threats.
Creditors won’t care if you say you are going to scream or hold your breath until you pass out, but they may be motivated to cut a deal if they know you are considering filing for bankruptcy. Depending on the type of debt you owe them, they know if you file for bankruptcy they may never get paid back, or will only get pennies on the dollar.
Contact Hanson & Payne Today
If you are struggling to pay off your debts, and are worried that bankruptcy may be your only option, now is the time to contact Hanson & Payne. Our experienced team of attorneys can take a look at your case and lay out all the options available to you to help you negotiate your debt. Contact us today to day to see if you are a good candidate for debt negotiation.