Many people are dealing with overwhelming debts and weighing their options for relief. While debt negotiations can be a great tool for getting out of debt, most people go about the process the wrong way. If you don’t do your research and prepare ahead of time you may end up losing the negotiation and not receiving the help you need.

Preparation Is Key

Debt negotiation is just like any other type of negotiation and requires you to put your best foot forward right out of the gate if you are to have a chance at winning. Creditors hold all of the power of approval and they are not required to negotiate with you in any way, which means any attempt to do so is a favor on their part. It is important to remember that your creditor has a lot at stake in a negotiation and should be treated as such.

Before entering into a debt negotiation you need to first evaluate your financial situation. Find out how much you can afford to pay your creditor each month and how long it may take you to pay off your debt. Make sure you evaluate your budget for debt payments based on your current financial hardship or worse case scenario. The worst thing you can do is negotiate a lower payment only to find yourself in default again.

Put It In A Letter

Most people never consider writing their creditor a debt negotiation letter. While making contact with your lender over the phone is an effective negotiation technique, it should follow a written letter. The purpose of a written letter is to demonstrate organization and good faith efforts in resolving your debt. A letter is also a way to document your attempt to claim responsibility for and efforts towards resolution. A debt negotiation letter signals to your creditor that you are serious about your debts and have intent to pay them.

There are some important aspects to writing a debt negotiation letter. First, include an explanation that outlines your financial situation, including why you may be suffering a financial hardship. You don’t need to get too personal, but it is a good idea to paint a picture for the creditor to see you with some sympathy. Also, include a written statement declaring your intent to repay your debts before you request their help. When asking for help with your debts give the creditor a few ideas or examples of how they can help such as lowering your interest rate or allowing a temporary suspension in payment. Finally, keep your respectful and never threaten your creditor or mention alternatives like bankruptcy.

“The patient fussed with her fur coat as she sauntered up to the doctor’s receptionist. “I have an appointment in 15 minutes with the doctor. Is she on time to see her special patients today?” The receptionist replied with a taunt to her tone, “The doctor’s patients are all special to her. She’ll see you soon.” With that, the receptionist left her station and engaged in other activities.

Are you aware that you can be perceived as more powerful by the way you present yourself? Do you know how to be more powerful as a negotiator? Continue reading and you’ll discover how to enhance your power in your negotiations.

Display of Empathy:

In the story above, the patient ‘sauntered’ into the doctor’s office, fussing with her fur coat and positioned herself as the doctor’s special patient. She projected an image of someone that was self-absorbed. Had she taken the time to observe the receptionist’s activities, commented about them and conveyed a pleasantry, the patient would have been displaying empathy. In doing so, she would have enhanced her power. Instead, she diluted it.

The display of empathy towards another’s plight is one way to bond with that individual. It also says subliminally that you’re not just concerned about yourself. You recognize the other person for what they’re dealing with.

Never discount the value or role that empathy plays in any interaction. It humanizes you while strengthening the emotional ties between people. And that enhances power.

Your Persona:

I’m the king. Bow down to me – Not! When you project an image of self-aggrandizement, some people will rebuff you. They’ll be appalled at the perception you have of yourself, which will cause them to become rigid to your request. While such a persona may work favorably with some people, over time, they too will become tired of it. Then, they will seek ways to avoid or demean you.

Your persona changes over the course of your life. Always attempt to align it with how you’d like to be perceived. During a negotiation, you can dilute a powerful position simply because your persona rubs someone the wrong way.

Demeanor When Rebuffed:

When you’re rebuffed, how do you feel? I’m sure your answer is dependent on who the person is, what the subject matter was, and where it occurred. Just as your answer depends on those variables, so it does with those you engage with.

To possess more power, limit its display to environments where it’s less likely challenged (e.g. boss vs. subordinate, etc.). In addition, if you know you’ll be in an unfriendly environment, have retorts ready that will subdue the subject of the rebuff. Just make sure you don’t escalate the situation and cause yourself distress.

Some of the reasons people are perceived as more or less powerful are mentioned above. There are more reasons but let those be a starting point. To enhance your negotiation efforts and outcomes, always be mindful of how you’re perceived. To the degree it fits the negotiation, align your perceived power based on the person you’re negotiating with. If it’s not perceived as being threatening or overbearing and that’s what you’re striving to achieve, you will have aligned the perception of your power successfully. That will make you appear to be more powerful… and everything will be right with the world.

Remember, you’re always negotiating!

In this age of information overload, the window of opportunity to keep your audience’s attention gets smaller by the tweet. How bad is it? It has been reported that we are bombarded by the equivalent of 174 newspapers of data a day. No doubt about it; we constantly battle a tidal wave of information demanding our attention.

The question is, “what can you do to capture the attention of your listeners?” Here are eight ways to “disrupt” the barrage of noise so your message is heard.

1. Tell a story.

As children, we all loved hearing stories. That hasn’t changed. Storytelling is instantly engaging because it taps into the feeling that we’re going to be let in on some sort of secret.

2. Make ‘em laugh.

Provided it is relevant to your subject, saying something humorous breaks tension. It also humanizes you and provides listeners with a new way of thinking about the topic at hand.

3. Use transitional phrases.

Crisp transitional statements like, “Before I go on, let’s summarize… ” help listeners know where to focus. Two others to try:

“The second issue is… “

“Now that we understand (summary statement), let’s look at (next topic)… “

4. Bring the Q&A in early.

Solicit questions often and early. Integrating your audience into your presentation engages them by allowing them to make comments or simply gain clarity.

5. Ask a question.

Ask your audience to share an example of the subject being discussed. If time is tight, ask a rhetorical question to get them thinking. Another way to engage is to ask a question and request a show of hands in response.

6. Move.

Yes, the simple act of leaving the front of the room and walking into and around your audience provides an element of surprise that keeps your listeners alert.

7. Get them talking.

Help listeners process your ideas by asking them to talk to the person sitting next to them. For example, you could ask them to share with their neighbor, “What would you do differently as a result of this presentation?” This technique effectively disrupts the status quo and helps re-engage your audience, while allowing you to assess their level of comprehension.

8. Reward participation.

He who participates gets a sticker. He who has the most stickers at the end wins a prize. Friendly competition prompts participation regardless of the makeup of your audience – from C-level executives to front-line employees, I’ve seen this work across the board.

Whichever technique(s) you try, remember – keep it relevant. From the story or joke you tell to the participation reward or activity you choose, make sure it paves the way for your listeners to take in your message. It’s essential to be able to disrupt everything else that may be distracting your audience so they can listen and act based on the powerful information you share.