You’ve probably heard financial advice wizards tell you that you can get started repairing your credit on your own, without using a credit repair agency to help you. But not everyone is a born lawyer with negotiation skills and a willingness to beat down the bank for a better deal. For those of you who want to know how to work on your own credit repair, here are some debt negotiation tips you can use. If all else fails, you can always call a credit repair company – why not try to do it yourself first and save money?

First, if you are nervous about negotiating your debt with the credit card companies, start out by being prepared. You want to make sure you know where you stand credit wise. Make sure you’ve seen your latest credit report, and that you know how much you owe each creditor, and how much you are past due. Having the most recent bill in front of you when you get ready to call is a good idea (if you don’t get nauseous reminding yourself!) Then, think positive – you are about to reduce the debt and stress you are facing financially. They sure can’t make your situation worse, so what have you got to lose?

Next, start with the worst card first – the most delinquent payment, the biggest balance – the one that nags at you when you try to sleep. That way, if you can get them to agree to helpful terms, you’ll have won the biggest battle. And if they refuse to work with you, you will have the satisfaction of saying that you’ll be putting their bill on the bottom of your pile while you work with other lenders.

Call the customer service number and talk to the collections department. (You may already have that number if they’ve been in touch with you already about late payments.) Ideally, you should have a goal of getting a reduced interest rate, which will lower your monthly payment, or some reduction of your monthly payment if you go on a payment plan, and finally a possible reduction of your balance if you pay off early. If you can get tis kind of deal, and can afford a lump sum might be a good way to go.

Figure out before you call what you can definitely pay each month. When you are asking for a reduction of your balance or a payment plan, calculate the fees and charges you’ve been hit with beyond your balance, and ask for those to be waived, at least in part. These fees can really add up to a significant portion of your bill. If you think you are in a position to pay a lump sum, have a number ready that you can pay, today, in the event that the collections person agrees.

Now it’s time to call the creditor. Keep your cool when talking to the credit card company no matter what. Credit collections employees are trained to get whatever they can out of you and some can be pretty nasty. Hold your ground and don’t give in unless you’re getting a good deal. Start out by telling them that in your situation you are unable to pay all of your bills, and that you are seeking to make a payment plan or a settlement.

If you can’t get anywhere when speaking with the agent, and can’t get any semblance of a compromise, you can either politely hang up the phone, or ask to talk to a manager. Managers have more authority to agree to reasonable settlements or payment plans. (In other words, don’t expect them to agree to take 25% of the total debt, but something reasonable might work.) Again, make sure you stay calm and sound reasonable. Before getting off the call, ask for the manager’s name and mailing address at the company, so you can document your payment plan.

If you are successful and get an agreement for a settlement plan, ask for a letter to be sent to you detailing this agreement. Do not just send a check without something in writing. Ask when you can expect the letter, and if it does not come, call the individual who agreed to the settlement. Never send a check with the term “paid in full” or “payment in full” written on the check, that does not work to settle your debt.

If you still can’t get anywhere, then politely hang up the phone, and move on to the next card company. Ultimately, you will find that some companies will be difficult, but some will work with you. After you set up arrangements with the reasonable credit card lenders, then send letters to the uncompromising credit card companies with your proposed payment plan. And in the mean time, you will likely get a settlement letter or other correspondence in a couple weeks from the difficult lenders, and you can restart your effort at that time.

for some people their financial situation just will not allow them to pay their everyday necessities – food, shelter, clothing, transportation to work – as well as their credit card debts. Let the difficult lenders know that if they cannot work with you today, you will be unable to pay them until after you work out deals with the lenders who will work with you. don’t agree to do a budget or offer other financial details to the credit collector, that is none of their affair. Just stick to your guns, and if they still say no, politely get off the call and move on.

When making a payment to a credit card company as part of a settlement, and after you receive their agreement in writing, you should send it registered mail or with delivery confirmation, to prove the check has been sent. Never just pop a check in an envelope, in the event it is lost. Be sure to add a cover note with proper account number, the name on the account, and add that this is a payment toward the agreement with the lender and the date of the agreement. This is just a way to cover your own butt when having to prove later that payments were sent properly.

Debt relief help is not far away if you follow these steps. These debt negotiation tips will work for you if you are patient, can keep calm, and are willing to take “no” for a temporary answer. Don’t despair, keep going, and eventually the credit card lenders will work with you to bring your debt current at a payment you can afford. Good luck!