You hold a lot more influence over your credit picture than you might think. Even though things are difficult right now for many consumers, it actually plays more into your favor when it comes to working with creditors for relief on loans and credit cards. The reason is that they would rather negotiate with you and get some money from you rather than having to incur the costs of taking you to court and expending energy in trying to contact you to settle your debt. Now, there are limits that they will probably not extend beyond, but at least it is good to know that you are in good position for a favorable outcome.

The type of consumer loan depends on the success that you will have in negotiating a better rate of interest. For example, your first mortgage company will be loathe to sit down at a bargaining table over your interest rate since the profitability of the loan is at stake and the principle and interest is a much higher amount.

The converse is true, however, in that credit card companies are relatively easy to work with on interest rate changes. In fact, they have built into their business model the accepted practice of changing rates in order to keep customers happy.

If you have a strong credit history, you will be more likely to be successful in working out a better rate because you have already demonstrated your ability and willingness to pay your debts.

Also, consumers have other easy options. You can take your credit card balance to another company easily and quickly which will leave the company with no income realized on your account.

Here are some negotiating tips you can use in your quest.

Write and send certified letters. These documents are admissible in court and it places the creditor on the defense if they say that have not received any communication from you when you can show that clearly, they have signed for one that you have sent.

Keep your cool. Do not threaten or become verbally abusive. This will only exacerbate the situation and likely prevent you from getting anywhere in obtaining a lower rate.

Be fair minded. You accepted the terms of the creditor when you signed on the dotted line, so be sure to acknowledge that fact. Also, be sure that you let the creditor know that you are willing to go through this so that they can benefit, too. This carries a lot of weight when they can see that they will be better off with a resolution rather than a rejection.

Leave out Bankruptcy. Do not talk about options beyond not being able to settle with them. These do not place you in a good light with the creditor and do nothing to further your request.

Finally, if you are given a lower rate, be sure to rigorously adhere to the change in order to remain a customer in good standing. Remember that you stand to benefit from this on your credit report as well because you will be in a better position to keep making your payments on time.

Be sure to have all of the facts in hand that you need in order to make your case when you contact your creditor. They will appreciate your thoroughness and hopefully reward your efforts.