When it comes to credit advice for single parents, negotiating with your creditors as a single mother is something that can have a dramatic effect on your credit score if you use the tips correctly. All creditors and lenders will report the handling of your account to the reporting agency but it is purely voluntary and it can be changed or modified very easily with a bit of persuading and negotiation, but you have to convince the lender to take this action. All negative reporting will affect your credit score and that is why you should communicate to your creditor or lender so that he/she understands that you are doing the best that you can to pay the debt. If you are able to set up a meeting with them in order to discuss the debt there are a few advantages that you can take with you to that meeting.
Credit Advice For Single Parents
- When it comes to credit advice for single parents the first thing you should do is try to convince them that the payment plan is not unreasonable and avoid becoming intimidated by the person you are negotiating with even if they make threats about law suits etc.
- You should prepare yourself for making more than just one call and be willing to come back and setup another meeting to try again or report back to them, it can all take a few days or even a few weeks.
- If you are able to afford a lump sum settlement as opposed to using a payment plan you will have a lot more negotiating leverage that you can use to your advantage.
- Usually the person that you land up negotiating with is the kind of person that does this kind of thing for a living so you need to be careful of jargon and industry terms that might be used that you are not familiar with.
- You need to make 100% certain that you know exactly what is expected of you and how to show your good intent. You could always consult a lawyer or a debt counselor to make sure of any issue that you are unclear about.
The best credit advice for single parents is that you need to make sure that once an agreement has been reached that it gets put down on paper and signed by you and the creditor in order to make it legally binding. For example if you have been able to convince the lender to show a bit of mercy and give you another repayment option on the money you will be able to negotiate anything as much as a 50% reduction in the total debt outstanding if you have good negotiating skills. You need to convince the person that you are negotiating with that you have every intention of paying this debt off and that you will do everything in your power to meet the financial and legal requirements of the contract.
When you are negotiating there are a few considerations that you should keep in mind and the first one is to keep the interest rate as low as possible, but you can go a step farther by requesting that the accrued interest should be waived and that you have very specific reasons for asking this. You can also include things like late fees, penalties and/or legal fees that should be waived as well because this is always an extra cost that gets added to your bill which is often not completely necessary.
Advice For Single Parents When Negotiating With your Debtors
There are many ways to approach a negotiation with your creditor and asking for a restructuring of the payment plan and the request for an extended time period or the skipping of one or more payments without paying a penalty is one of the things that you can use. Obviously what is very important in the negotiations is that you know exactly what you can afford and that by the time you reach an agreement that you both agree that the new payment plan would allow you to pay off the money currently owed with no added interest or fees being added in the future without your knowledge. If you are able to offer a settlement you need to keep that information until the correct time in the negotiations and when to bring it up because if you play your cards correctly you will achieve a 50 or even 75% reduction in the total debt that is owed.
Probably the most important aspect of your negotiations is the reporting of negative information to the bureau which you can ask to be altered by the creditor who is able to delete or change the negative info submitted at any time he/she pleases. This is an important aspect that you need to keep in mind during the negotiations as it will directly affect your credit score as well as the interest that you will be required to pay in the future. But before you even make the call to your creditor or lender you need to make sure that the debt has not been written off or charged off. This is important as you will have to claim that the debt has been written off in your tax return statement. If the answer is that the debt has been written off then there is nothing more to be done and you need to move onto the next debt that you have in line that needs to be dealt with. Every state has a difference in their statute of limitations and you should see exactly what your statute of limitations is before you start negotiating with the lender on how to pay the money back.
Collectors only have a specific period of time to collect on a debt so you need to find out if the statutes of limitations in your state have passed. The statute or SOL is an important aspect depending on the age of the debt because no debt is allowed to still be reflected in your account if it is more than 7 years old and if it is still reflected on your account at the bureau you can lodge a complaint and it will be removed. But the seven years and getting the order removed from your bureau account is only part of the problem as it has nothing to do with the statute of limitations and if the statute is still in place for that debt after 7 years then theoretically you can still be sued for that debt by the lender. It is only when the bureau as well as the statute have expired that you no longer have to worry about that debt.
Credit advice for single parents is readily available. If you are unsure of the correct procedures or steps to take you should contact a credit advisor for single parents. The Credit Advisors Foundation can offer you debt consolidation programs and credit counseling services which can help you get your financial situations worked out.
The Credit Advisors Foundation can also offer great credit advice for single parents when it comes to:
- Credit Cards
- Finance Companies
- Car Loans
- Student Loans
- Medical Bills
- Mortgage Payments
- Back Taxes
- Department Stores
- Collection Agencies