Due to the bad economy situation, many people are struggling hard to pay off their credit card debts. However, the “drain” seems to be very deep and they find it hard to dig themselves out from it. One of the financial solutions I would like to recommend here is negotiating with the banks or credit card companies to request for debt reduction. In order to eliminate the debts, you are required to bargain with your creditors to settle your total outstanding at a lower amount which you can afford to pay. The negotiation process can be done through telephones or letters.

In this article, I would like to share with you 4 essential tips which you can apply when you are dealing with the card providers through telephone.

# TIP 1: FIND OUT THE RIGHT PERSON

Do you know to whom you should speak when you call your lender? The specific person you should contact is the CREDIT MANAGER. Bear in mind that do not waste your time to negotiate with the customer service representatives who answer the phone. They don’t have any authority to deal with you. The person who has the authority to bargain with you is the credit manager.

# TIP 2: CONVEY THE MESSAGES CLEARLY

Once you get the RIGHT person, you are suggested to introduce yourself and brief the person in charge about your current financial situation. Inform him or her about your intention to settle your debt. State your settlement offer clearly. In most of the situation, the credit manager usually counter offers you a settlement amount. You are reminded not to agree with the first proposed amount. What you need to do is to jot down the credit manager’s name and the direct line. Inform him or her that you need some time to consider and you will call back.

# TIP 3: HOW TO CLOSE THE DEAL

After 3-4 weeks, you are advised to contact the same person and negotiate again. You should bargain with him or her until you can reach an amount that is fair for both parties. If the credit manager refuses to agree with your offer, you can inform him or her politely that you may consider filing bankruptcy if credit card settlement fails.

# TIP 4: TELEPHONE ETIQUETTE

Since communicating through phones is considered verbal communication, the lenders usually record the conversation. Hence, you are reminded to speak politely to the credit manager. Don’t be rude and don’t use threatening words during the discussion. Never ever cry or shout loudly because it will make the situation worse. Don’t make any promise and don’t give your commitment unless both parties have come to an agreement. If you are too nervous and have no confidence to call the credit manager, you can get yourself prepared by having a script. Write down what you want to say so that you won’t miss any important point.

After you have completed the negotiation process through the phone, you should then follow up with your creditor to obtain a written agreement. For people who are good at interpersonal skill.