Are you struggling with credit card debt? If yes, then negotiating with your credit card company can make a big difference in resolving the problem.
In this post, let’s talk about the proper steps of negotiating credit card debt.
Why Borrowers Need to Negotiate
Some people may be hesitant about the idea of negotiating with a credit card issuer. However, if you take the initiative to request for better terms of repayment, you may be surprised to find out that you credit card company can actually lend a helping hand.
On Negotiating Interest Rate
There is no need to wait until the problem has become insurmountable before considering a negotiation with your creditor. If you have a good payment record with your credit card company and a good credit history, then call up your issuer to request for a lower rate.
It’s important to ask to speak with the right person who can make decisions regarding your request. Most customer service representatives will immediately say that it is not possible to lower your rate. Always ask to speak with the manager or the supervisor of the bank.
When speaking with the person in charge, explain your situation politely. Why would you like to get a lower rate? Let the manager know the advantages not only for you but for their company as well. Initially, the issuer may refuse to give in to your request. But do not give up and call again after a month or two.
Check out the market and get to know your options. Are there other credit cards that offer a lower interest rate? Is it possible for you to make the switch? Let your present issuer know that you are thinking about switching to enjoy better terms.
On Negotiating A Debt Settlement
If you are in a debt where it’s not possible for you to pay your balance at once, you can try to negotiate for a settlement. Do not wait until your account has been passed on to a debt collection agency. Since these agencies make profit through collection, it will be more difficult to negotiate your debts.
Before calling your credit card company, seriously consider how much you can afford to pay and where you will get the money. Remember that once your issuer agrees to a settlement, you are expected to submit your payment right away.
When you’re ready, meet with your creditor and explain your situation. Propose for a settlement. Keep a record of you conversation and put the terms of agreement into writing. If you are not familiar with the process of negotiation, seek help from a trust debt settlement agency or credit counseling agency.
