Whether you are working alone or enlisting the help of non profit debt consolidation company or other service, debt negotiation can be tricky. To make things a bit simpler, consumers should keep these five tips in mind throughout the settlement process.

1. Know what you can and can’t afford.

Know the absolute most that you can afford to pay for a debt and stick to your budget. Agreeing to pay more than you can handle will only result in another bad situation. The point of debt negotiation is to reduce your debt to an affordable amount, not to promise more than you can deliver.

2. Keep careful records.

Record all phone calls and keep detailed notes. Once a debt collector knows that they are being recorded, they will be less likely to use threatening or intimidating tactics. If they do use excessively threatening tactics, you may be able to pursue legal action and the collector may be fined up to $1,000.

3. Never give out any information that you are not comfortable giving.

Do not give out bank information, employment information, account numbers, or agree to have automatic payments withdrawn from your bank account. This will make it less expensive and easier for the collection agencies to take you to court over the debt.

4. Ask for all agreements in writing.

Never pay any amount until you have a written contract. Do not take debt collectors at their word. The best way to protect yourself from being mislead is to make sure that you have all agreements in writing.

5. Don’t let yourself feel threatened.

Debt collectors are trained to make debtors believe that their outstanding debt is the most important bill they have. Yes, creditors and collection agencies can sue a delinquent consumer. However, just because they are hinting that they may pursue legal action, does not necessarily mean that they will. Stand your ground while negotiating and don’t let yourself become intimidated.

One of the greatest benefits of hiring a debt settlement company is that they will handle the negotiating process for you. This can save consumers a lot of stress. Fortunately, when following these tips, consumers will be able to handle the negotiating process much more effectively, whether working alone or with a professional.