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How to Negotiate Credit Card Debt

credit card debtHOW TO NEGOTIATE CREDIT CARD DEBT

Being over your head in credit card debt is affecting millions of Americans today. For many individuals, it creates the feeling of being out of control. However, you should know that this is not always the case. With the current state of the economy, creditors are more willing to negotiate with you about your credit card debt because they know that getting some kind of payment is better than not receiving any at all.

Additionally, they may be willing to negotiate on a number of aspects of your credit card account such as fees, interest rates, and a repayment schedule. In most circumstances, all you need to do is sit down with your creditors and discuss your circumstances in order to negotiate your credit card debt. If at all possible, you want to try and negotiate instead of walking away from the debt and allowing it to be charged off.

The following is a list of 6 steps or suggestions for how to negotiate credit card debt and get back on your feet again:

LOWER INTEREST RATES

Ask for a lower rate of interest on your account – whenever you make only the minimum payment required, most of your payment goes towards paying the interest on your account. According to recent statistics, you could lower that rate by as much as 2% – provided you have been making your payments on time.

ASKING FOR WAIVERS ON THE FEES

Request a waiver on all fees associated with your account – these include ATM and late payment fees for the most part. Just be aware that many credit card companies won’t budge on these, so your request may get shot down.

NEGOTIATING FOR A PAYMENT PLAN

Create your payment plan – you want to make sure that you have done this before you ever sit down with your creditors as they will be looking for this. If you’ve been following your account payment schedule, you may not be able to negotiate a better one. They will be more willing to work with you if you have fallen behind.

DEBT SETTLEMENT

Consider a lump sum payoff – if you have the funds available, offer the creditor 25 cents on the dollar as a lump sum payment.

PUT IT IN WRITING

Whatever results from the negotiations, get it in writing – if you and your creditor have agreed on a plan of action, get it in writing from your credit card company. Never trust an oral agreement to work with you.

CREDIT COUNSELING SERVICES

Go to a credit counselor – this is just common sense. Credit counseling can help you to avoid getting into these circumstances again.

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