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Can I Negotiate a Credit Card Debt Reduction?

By Edited Jan 27, 2016 1 1

As the bills mount, and you begin to fall behind on your payment, you may ask yourself: Can I negotiate a credit card debt reduction? The answer is yes, but it will take some hard work and effort on your part. This will be very stressful, and you need to realize this before you get started. The process can be very long, hard to deal with, and stressful. You will find little sympathy, in most cases, from your creditors. Still, when you wonder if you can negotiate a credit card debt reduction, the answer is yes.  You may want to check out sample hardship letters to credit card companies as well.

 

Gather your bills:

Before you do anything, you will need to round up your current bills. This is essential to negotiate a credit card debt reduction. The time you spend preparing will pay off big when attempt a settlement.  

Really, what you are going to attempt to do is figure out exactly how much you pay, in total, each month for all of you expenses. This will allow you to figure out why you are falling behind, and help you determine what you can do financially to spur the process along. When you negotiate a credit card debt reduction, you must know exactly what you can afford to do, especially if you are going to do it yourself.

Determine how much disposable income, if any, you have each month. This will really help you out when you negotiate a credit card debt reduction, because you will know what you can do to work with the creditors. In addition, you will be able to see how much the savings will help you out.  Dealing with these guys is similar to dealing with collection agencies.

 Revolving accounts:

When you wonder, can I negotiate a credit card debt reduction or settlement you will need to first pay special attention to your monthly statement for each account. This way, you can see how many payments you have missed, and where your interest rate has gone to. In addition, you will be able see how much you owe, in total, to your revolving account creditors. Add up the totals, if you will attempt to negotiate a credit card reduction with more than one company. Be sure to have the totals written down separately, for each account, and accumulatively, for all of the accounts.

 

Why are you behind?

If you are behind on your payments because you or your spouse lost a job, you may not need to negotiate a credit card debt reduction. In addition, if injury has caused the problem, you may not need to attempt a settlement. Many times, creditors push protection plans when you sign up for their accounts. Some of the programs include coverage for situations like these. See what you have, it may eliminate the need to negotiate a balance reduction.  You may not be able to afford small loans to pay off credit card debt either.

 

Set your goal:

Now that you know exactly what you can do, and how much you owe, it is time to set the goals you hope to accomplish when you negotiate a credit card debt reduction yourself. While you may wish to eliminate 90% of the amount owed, it is not a realistic amount. You will need to be realistic. Perhaps you can eliminate 30%. Maybe you can focus on the late penalties and fees, and try to get those eliminated, saving you hundreds, or maybe thousands of dollars. You can negotiate a credit card debt reduction, but you will need to know exactly what you are trying to accomplish for best results.

 

Make the call:

It's now time to call the creditors, so you can begin to negotiate a credit card debt reduction by yourself. Generally speaking, there is little point in talking to the person that answers the phone. In most cases, this person will not be authorized to work with you. Politely tell them what you are attempting to do, and ask to speak to someone with the authority to help you out. In some rare cases, the person on the phone may be able to make some small concessions. If they state they can, work with them, at least initially to negotiate a credit card debt reduction.

 

State your case:

Now it is time to get into the nuts and bolts of the process, as you begin to negotiate a credit card debt reduction. You will need to explain to the representative what you are willing, and able to do to get the deal worked out. This may mean offering to make a onetime payment, if you are in such a position. If you cannot do this, there are plenty of other possibilities you can use to negotiate a credit card debt reduction. The settlement has many different angles to work.

If you are trying to eliminate your late fees and penalties, tell the representative. Be sure to tell them what you are willing to do to make it happen. Elimination of fees and penalties is often the easiest way that you can negotiate a credit card debt reduction. Can you make additional payments for a certain timeframe?

 

Get it in writing:

You can negotiate a credit card debt reduction yourself. You should make sure that your hard work pays off by getting any agreement in writing. This will give you something to fall back on if the company does not hold up to their end of the deal. Of course, it gives them ammo if you do not maintain your end. This is why you must take the time to prepare, as mentioned earlier, so you know exactly what you can and cannot do. When you negotiate a credit card debt reduction, you must make sure you can follow through, and hold up to your end of the bargain.

 

If it's too much:

While I know you can negotiate a credit card reduction yourself, you may not be able to cope with the stress and hassle involved. If this is the case, you will find a lot of companies, on the internet or locally, that will work with your creditors. You will be required to pay them a fee, but it may be worth it for you. You can have a professional negotiate a credit card debt reduction on your behalf.

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Comments

Nov 12, 2009 1:28pm
goodselfme
Lots of good help by you in this well written article.TX thumbs up too.
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