A Complete Guide to Credit Card Debt Negotiation
Huge credit card debt often make us feel that repayment is a never ending process. But do you know credit card companies can easily be approached about interest rate reduction, payment plans or time extensions? A solid debt management solution is learning the negotiation skills to handle your debt problems.
Credit Card Debt Negotiations
Debts on credit cards usually have high-interest rates and accumulate rapidly. That’s what makes repayment even tougher. But per debt management experts, credit card debt can be negotiated. Companies offering cards can reconsider interest rates and the time period for debt settlement. You just need the right tactic to negotiate. Some negotiation strategies as part of debt management solutions are discussed below.
Ask for a lower interest rate
If you are regular in your monthly payments and maintain a good credit rating, you can negotiate for a lower interest rate. Debt management counselors suggest asking for at least two percent less than the national average as the ideal. Even if there is a delay of one payment for one reason or other, there is no harm in approaching the credit card authorities in question. You never know, they might still agree to reconsider your debt problems.
Opt for a lump-sum settlement
Debt management solutions companies often suggest a lump-sum settlement where you can pay up to 25% of the total credit balance. It will entitle you to get a discount on the interest rate.
Request for fee waiver
Although this trick might not work with every credit card company, it’s worth trying. Request a fee waiver for late payments and extra charges incurred while accessing money from ATMs and while using “free checks.”
Make a payment plan
For those of you who are regular with your monthly payments, this strategy won’t work for you. But due to financial constraints, if you haven’t been able to pay your monthly balance for several months at a stretch, then you can go ahead with this debt management plan. Citing your financial problem, request the credit card companies to set up an affordable plan for you. You will be surprised to find most of them giving in to your request. It’s because they expect to recover their money in this way, albeit slowly.
Seek counseling from debt management experts
Negotiating with credit card companies is not easy. It requires a lot of convincing power to make them agree to any kind of waiver. So if you are not confident, it’s better to take help from professionals debt management counselors.
Processing your request, Please wait....
