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Negotiating a debt with a creditor

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Overview

If you owe money and are having trouble paying, you can try to negotiate with the person you owe (the creditor).

Preparation

It is good to prepare well for a conversation with a creditor and to:

  1. find out how much you can pay (payment ability)

  2. write down the topic you want to discuss, such as:

    • amounts

    • number of instalments

    • interest rate

    • times

  3. set realistic goals to increase the likelihood of reaching an agreement.

Contact

You contact the creditor by calling, sending an email or visiting the place.

Explain your situation and that you:

  • are struggling to pay off a debt or loan

  • would like to explore the possibility of renegotiating or drawing up a new payment plan

You need to be ready to give information about your financial situation.


Next: Points of agreement