Credit Card Debt Negotiation Tips
Many people around the world undergo credit card debts. Well, each one has their own reasons for it. Some have got caught up in debt due to unemployment, while some have landed in debt due to hap hazard expenditures and least concerns towards financial planning! Needless to say, credit card debts are really daunting and the fact, that you are under credit card debts, constantly hammers your brain! But is there any way to come out of these debts? Well, if you are thinking about it, I would advice you to think upon it in a slightly different manner! A manner, which would benefit both the parties, you as well as your credit card company. By this, I mean negotiation. The easy ways to negotiate debt settlement explained below, would give you an idea of negotiating for the settlement of your credit card debt.
Tips on How to Negotiate Credit Card Debts Successfully
Negotiating credit card debts starts with a call to the credit card company! Certainly, this simple looking thing is actually your initiative towards your benefit. Many people hesitate to give a call and speak about their debts to anyone. However, you should think of your benefit and understand the situation. So the first tip is to give a call and talk about negotiations. But, what to do after calling? What kind of negotiating proposals would you suggest the company, to relieve you out of all the credit card debts? Well, here's an answer for it!
Tip 1
This is the easiest and also the least complicated of all the credit card debt negotiation tips. You can straight away opt for a lump-sum settlement and clear all the debts. Suppose you are liable to pay USD 10000 to the credit card company and you are in a position to pay just USD 2500, then you can offer for a 20 percent payment out of the total debt. However, if the bank insists on 30 percent, then you can come up to a mid point of paying 25 percent of the total credit card debt. This is the most popular negotiating technique. This is because, if the company finds you on the verge of bankruptcy (or if you will be filing for bankruptcy in the near future) and finds out that you would not be able to pay anything, then they would straight off agree to your proposal, as something is better than nothing! But be sure you have the offered amount ready with you, as you will have to make the payment at once!
Tip 2
For a common man like you and me, debt consolidation is another better way to get out of debt. People who are not self-employed do not have much bargaining power and also if you are not lying on the edge of bankruptcy. But if one just wants to reduce his debt anyway, debt consolidation is an ideal choice. Debt consolidation characterizes mobilizing all your debt amounts and paying a whole lump-sum amount to the credit card company.
Tip 3
You can try to negotiate in another way. You can try with requesting the company to waive off charges involved in, accessing instant money through ATMs and paying late fees. This could reduce your debt amount to a large extent. Some credit card companies might refuse to do so! However, a few might agree to it and you would find it easier to get out of credit card debts.
Tip 4
You could find the interest rates too high if you are into several sorts of debts. In such a situation, for settling and negotiating your bad credit card debt, you can offer a lower interest rate as compared to the existing one. The company might agree to it without much inquiry, if you are regular in making payments. However, if you aren't, you can at least make an attempt to ask, whether such a thing is possible!
Tip 5
Come up with a payment plan. This is another healthier option, while negotiating for a credit card debt. You can design a payment plan in coordination with the credit card company. See that you consider your monthly budget and other essential monetary constraints before creating the new payment plan. Currently, if you are in a payment plan that demands debt payments in two years, then try to redesign a plan, which would permit you to pay the money in four to five years. Your credit card company might readily agree to it, as receiving money at a slower rate is always better than not receiving it at all!
Tip 6
There are chances that the company might ask you for some proof pertaining to your negotiations. In such cases, if you do not produce relevant documents, you might land up in trouble. So better ways, get each and everything well documented and duly signed by the concerning authority of the company.
If you find it difficult to deal with your company in this regard, then you can seek help from credit counselors, who would either train you in negotiating or would do the task themselves. Apart from implementing the above said core tips, you also need to be patient, keep a follow up and finally be polite, as its you who is the needy and the last thing desperately needed by you! Best of Luck!
