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How To Negotiate Credit Card Debt

Being in a financial crisis can be disheartening, you have utility bills and other vital expenses to pay for. With credit card fees racking up by the day, you need to find a solution soon. What most people don’t know is that it is possible to negotiate an agreement with your credit card provider. While all you have to do is ask, it is not necessarily going to be easy to negotiate. However, negotiating credit card debt is a stepping stone toward easing your financial burden.

How to Negotiate Credit Card Debt

Below are some steps to take when you realize that you have a debt problem

How to Negotiate Credit Card Debt

1. Request for a Lower Interest Rate: When negotiating your credit card debt, ask your provider to bring down your interest rate. Depending on how well you present your case, you could get your interest rate lowered considerably which will eventually bring down the overall amount you pay. Do not hesitate to ask for lower rates just because you haven’t been consistent in paying. Some credit card companies can be very understanding and it also doesn’t hurt to ask.

 2. Ask for a Fee Waiver: This is a long short but worth a try. You can ask for a waiver on payments such as punitive fees for going over your limit, late repayment, ATM transaction and usage of free checks. While most credit card companies will not give this proposal second thought, others are surprisingly going to come to sort of agreement on this.

Credit card agreement3. Payment Plan: A payment plan involves you and a representative from your credit card provider. While most credit card providers are hesitant to negotiate, at the end of the day they need to get their money back. Paying slower is much better than not paying at all. When negotiating credit card debt, it is best key in all your sources of income. Be sure to work out an arrangement that will not strain you because failure to keep your end of the bargain may lead to nullifying the whole agreement hence hamper your endeavor to live a debt free life.

Always ensure that you have the agreement in writing just in case the company decides to go back on its word.

4. Debt Management Programs: Debt management programs offer great help when you want to eliminate credit card debt. They not only help you in settling card credit debt but also help address the financial issues you have. If you are in a major crisis with several cards, the program will include all these factors and close them down. While their methods of settling card credit debt are much better than filing for bankruptcy, your credit score is bound to suffer. This is however a small price to pay considering the amount of debt accumulated. The debt management program will go about negotiating credit card debt with your provider on your behalf and are much more likely to get a better deal than you are.

5. Forbearance Program: A forbearance program is also another ideal way to eliminate credit card debt. This method gives you some space to put your finances in order before paying up. You will still be required to pay up your full debt if not more at the end of your grace period.

Negotiating credit card debt is a great starting point to living debt free. Finding a suitable method is essential. Have you or know anyone that is in serious credit card debt? What course of action taken in getting rid of this credit card debt?




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