MyPaydayAdvance.com

When negotiating with creditors, it often feels like they have the upper hand. You owe them money, and they will do whatever it takes to get that money from you. They will use techniques that sometimes border on harassment, and they can make your life miserable with persistent letters and phone calls. If you could just negotiate some sort of settlement with them, then you could finally get them off your back.

This, of course, is easier said than done. If you have money to pay them off, then it's no problem. However, if you have no money, then you obviously can't use that bargaining chip. So, what strategies can you use to negotiate with creditors when you're broke? There are solutions, believe it or not.

First, do not tell debt collectors that you have no money to pay. You are under no obligation to tell them how much money you have. Think about it: If you're playing a game of poker, do you reveal your hand to the opponent? Of course, not! Similarly, you should never reveal your financial situation to your creditors. They need to be under the impression that you could possibly pay off your debt, if they're willing to make your life a little bit easier.

Did you know that most creditors will, if asked, accept a settlement that is far below the full amount of the debt? In fact, a 50 to 75 percent reduction is not out of the range of possibilities. The fact is, the creditor would much rather get some money than none at all. You might not have money with which to negotiate now, but a deep discount in your settlement will make it much easier to pay off what you owe in the near future.