- 1). Make a list of everything you owe, including your mortgage, credit cards, personal loans, car payments, student loans and medical debt. Some creditors, such as hospitals, are more understanding and willing to negotiate than others. Start with those first.
- 2). Calculate your monthly income, minus taxes.
- 3). Collect all of the 0% and low-interest credit card offers you receive in the mail. These will help you negotiate with credit card companies.
- 4). Contact your credit card issuers. Tell them that you've received a better offer from another company and that you want to close your account and transfer your debt. Ask if they would be willing to lower your interest rate to match the new offer. More often than not, the answer will be "yes." If they say no, ask to speak to a supervisor.
- 5). Contact your mortgage lender and explain that you cannot afford your current monthly payments. Ask to sit down with an adviser to discuss adjusting your repayment schedule. Most banks are happy to negotiate a payment schedule that you can afford. It's cheaper for them than repossessing your home.
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