Many consumers and companies have been taking a wait and see approach to recovery.  An article in Fortune Magazine describes how some CEO’s have decided to buck the “wait and see” game and start setting their own rules for recession recovery.  Their first step is to ditch to the mentality that, “If we can just hold on, …, one of these days things will finally get back to “normal.” If anything is clear after this recession, nothing will really be normal for several years to come.  One example cited by the article was Nalco, a $4.2 billion water-processing company.  At the beginning of 2009 they had a significant amount of debt. They became proactive by restructuring their cash flow and debt which enabled them to refinance that $1 billion at a lower rate. The company is now more poised for growth and flexibility than it was before the recession.  The article highlights strategies that companies are using to be proactive, which include:

• Looking at creative ways to free up cash
• Refinancing after improving cash flow
• Identifying new opportunities for growth
• Developing a long term strategy
• Developing recycling initiatives
• Leveraging rebate programs

The article ends with a general pep talk that “No matter what business you are in, no matter what you’ve done till now, there is still time to change your attitude from that of fighting for survival to seeking opportunities for growth. Face the tough decisions, but don’t let cutbacks stop you from seeing the windows of opportunity that are suddenly open. Think creatively. Act aggressively. We can’t predict with certainty when the broader economy will recover. But your company’s recovery can begin whenever you’re ready.”

This list isn’t rocket science.  It can be easily applied to consumers on a smaller scale.  Before you negotiate with your credit card company, do your research and sum up your cash flow so that you are in a better position to negotiate.  For example, free up cash so that you improve your personal “cash flow.”  Easier said than done, so…start with the little things and work you way up.  Cut coupons.  Send in the rebate instead of letting it pile up on the counter. Renegotiate your car insurance.  Next, identify opportunities for growth.  More consumers are supplementing their income. The Fortune article describes, for example, how many consumers are selling AVON as their new personal opportunity for growth.  Lastly, research your options.  Know what your credit score is and do some comparison shopping (not buying) before you negotiate.  Beginning a negotiation with your credit card company without knowing where you stand in relation to other competitors will undercut your ability to negotiate your value as a customer.  When you have all the pieces together then make the call.  You can now make a better argument for a lower rate or negotiate a settlement of your balance.  Regardless of what you negotiate, think and review before you commit.  Ask for the complete cost of what you negotiate for.  To get the lower rate is the company going to require you to pay some type of hidden fee?  Re-negotiating your credit card debt may be the simplest solution to get you back on track and to begin moving forward.  But if it’s not, remember that facing tough decisions can actually open windows of opportunity.  If you need more help with your debt management, contact a qualified bankruptcy attorney. Sometimes re-negotiating the debt only results in prolonging of the debt and your financial crisis.  Bankruptcy may be a better option for your financial situation, especially when you have already exhausted all the strategies for increasing your cash flow and you continue to struggle with high debt balances.  Through bankruptcy, your unsecured debt, like credit card accounts, can be either repaid or discharged.    Either way, you are able to get real relief, not a temporary fix.  Sometimes, the toughest choices end up being the best choices.  Contact a qualified bankruptcy attorney so that you will know what options and opportunities are available to you.