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Question 19

Collectors and original creditors sometimes accept negotiated settlements or hardship arrangements — but successful negotiation usually starts with a clear, documented request and a demonstration of hardship or an offer of a realistic payment plan. Jumping to immediate partial payments or verbal promises without getting terms in writing can lead to misunderstandings. A useful first step is to contact the creditor (or collector) calmly, explain your situation, and ask what hardship options or payment plans are available — and then get any agreed change in writing before paying. This protects you and prevents accidental admission of liability on disputed amounts.

If you can’t meet your current minimums but want to avoid default, what’s the best first action?

Did You Also Know...

By Wise Wallet

A HELOC (home equity line of credit) functions like a credit card secured by your home’s equity and carries variable rates and repayment risks.