Many of us have had bills we can’t pay. Whether it’s the doctor’s office, the hospital, a bank or a utility company, a few techniques can help you communicate with your creditors and negotiate an arrangement that will work for both of you.
- Be proactive. Creditors are pleased when someone who owes them money takes the initiative to contact them to work out arrangements. This tells them that you’re responsible and conscientious and that you care about paying your debts. You are the type of person they can trust and they are likely to want to work with you.
- Find the right person. Don’t try to negotiate with the first customer service representative who answers the 800 number. Instead, find out who the accounts payable person is, or ask who the account manager is.
- If reasonable, go in person. For smaller agencies like doctor’s offices, hospitals, or local credit unions, consider visiting their offices in person. In person, you can make a connection, use eye contact and body language, and establish a personal relationship that will help the account manager remember you and want to work with you. Also, it’s much harder to refuse help to someone who is sitting right in front of them and talking with them.
- Be informed about your financial situation. You will make a better impression, be more effective, and receive better results if you enter your conversation with a thorough understanding of your budget and financial situation. Before you meet with you creditor, create a list of your budget and all your required expenses. Having such a budget not only helps you know what kind of payments you can make, it help illustrate your financial situation to your creditor. They may be skeptical when you say that you have only 20.00 a month to pay toward their debt, but after you show them your monthly income along with your expenses, they are more likely to understand and respect your position.
- Be respectful. Financial guru and radio personality Dave Ramsey advises callers who have medical bills that they cannot pay to start their repayment negotiations with, “Thank you for saving my life.” Being respectful and courteous tells the other party that you are not resentful, hostile, or trying to blame them for your financial situation. It makes them more open and ready to listen to you.