With vast number of individuals filing for bankruptcy and statistics of rising unemployment, credit card issuers have learned that better get something than nothing. It’s through this realization that negotiating credit card debt has become so widespread. Guess this would be the only positive point which has emerged during the recession and post-recession era.
Negotiating credit card debt is not as simple as it seems to be. Different card companies react in diverse ways when approached. Just as no two customers are alike in their finances, priorities, and risk tolerances, so is the case with these card companies. The guidelines & procedures they utilize when negotiating credit card debt can vary significantly. This puts the card holder in a doubtful environment to operate and can make the process of negotiating credit card debt very taxing.
Certain strategies pertaining to negotiating credit card debt may give good results but sometimes it may even land you in trouble. This is in reference to what had been already mentioned above, that negotiating credit card debt has varied implications with diverse card companies. Successfully negotiating credit card debt also depends upon specific timeline because it has been seen that some strategy works better may be a month later than now!
Negotiating Credit Card Debt has never been easy:
• Ask for a lower interest rate
• Request for using free checks for making late payments & accessing money through ATMs, be waived.
• If you’ve been making regular payments in a timely manner, negotiating credit card debt in such situations won’t help. However, if you have missed on few payments, you might find them ready to for negotiating credit card debt as they would be happy to receive reduced than no payments at all.
• While negotiating credit card debt, offer a lump-sum settlement near about 25% of the total dues.
• Get all negotiated deals of your credit card debt in writing.
• Seek the services of credit counseling.
• Always be straight & honest regarding your state of finances & what you can afford while negotiating credit card debt.
• You can also request for a pass on fees. Surprisingly some card issuers are open to pardoning the fine’s associated with late payments, or even balance transfers.
Lastly, ensure that you stick to your end of the negotiation else you would be left with no alternative of a lawsuit is filed against you by the card issuer. It’s never an impossible task of working out a lower interest rate or reduced payment fees while negotiating credit card debt but one should never forget that it’s not like a fairy magic wand that with a whoosh all things falls in the right place. Serious examination of your spending habits and meticulous working on saving to pay for dues is necessary.