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Creditors will kiss your backside to get money out of youas long as you don't take any crap. Whether you are dealing with late payments or delinquent accounts, you can make outrageous demands, keep excellent credit and often walk away with a better deal then you started out with. So don't be afraid to deal with your creditors. Follow the steps below and soon, "debtors' hell" will be a thing of the past.

DEALING WITH OPEN CREDIT ACCOUNTS

You have more power then you realize regarding open accounts. Creditors want to make you happy because they don't make money if they lose you. So when you dealing with creditors, be willing to keep calling and asking for what you want even if you are told no. Eventually, you will get your way.

1. If you are "just a little bit late," whether 30/60/or 90 days, make the minimum payment on your bill and you will instantly be current.

2. If you can't make the minimum payment, call the creditor and let them know you are having trouble. Ask if they can help in any way. They will usually offer a payment plan, or accept a partial payment while marking your account current. Just remember to assure them that you want to keep your account in good standing, and try to keep that account open NO MATTER WHAT! Closing any accounts is going to drag your score way down.

3. Ask creditors to lower your interest rates. It's common for a Creditor to raise your interest rate if your payment arrives even 24 hours late. The only instances where they may refuse are if your balance is high or if you have a lot of late payments.

4. Ask for balance transfer deals from accounts in good standing. By simply transferring balances, you bring the other accounts current, and will get a better interest rate in the process.

5. Ask for creditors to raise your limits on the accounts that are paid off and in good standing. Since 30% of your credit score is based on how much you owe divided by how much credit is available, this one simple action will raise your credit score in the next 30 to 60 days.

DEALING WITH COLLECTION AGENCIES

When it comes to collection agencies, they believe one thing: "This person will never pay, so take them for whatever you can." Keep this in mind when negotiating and don't let them intimidate you into making payments you can't afford.

1. Call your creditors and find out who has your account.

2. Ask the creditor how much they are willing to settle for. Do not be the first to make an offer. The collection agency bought your account for pennies on the dollar and they already know the lowest possible profitable settlement, which could be as little as 30% of your original debt.

3. By law, they can only take three postdated payments. Therefore, they will try to settle on three monthly payments that won't bouncean amount you can dictate.

4. Play hardball. See how low you can get them before you give your banking information.

5. Ask them to "put it in writing" and fax or email it before you make a payment. If this is not available, ask them to mail it today. Give them your info, but let them know that you have to have the letter ASAP or you will stop the payment.

6. Once a debt is paid off, dispute that company on your credit report. Since they are not the original creditor, you can have them removed, thus increasing your credit score.

Just remember"He who has the gold makes the rules." Your making the paymentyou make the rules.

Learn more about this author, Erica T. Barton.
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