Credit card debt negotiation is a situation that nobody wants to engage but lots of people who find themselves in just that predicament. For any reason, from money mismanagement to unforeseen circumstances, there are times when you can’t fulfill the terms of your financial obligations and, thus, need to negotiate new terms with credit card companies.
When you are struggling with unmanageable debt, it is important to realize that your creditors would rather work out a solution with you than not be paid at all. By negotiating debt settlement you are going to work together with your creditor to come to a solution that benefits everyone.
Debt Negotiation Attorney vs. Do It Yourself
Many times it can help to use the services of a debt consolidation or debt settlement expert, but sometimes you can negotiate with creditors yourself and find positive solutions.
Debt negotiation attorneys often claim that they can get you a better deal than you can get for yourself because they have a special relationship with creditors. Although there are some legitimate debt negotiation services, many are not, and they can actually do you and your credit report more harm than good.
Remember, in credit card debt negotiation, no one is more qualified to negotiate the terms of your debts than you. Credit card debt settlement companies, even the legitimate ones, don’t have any more power than you do. If you’re good at negotiation, save the money you would pay a debt negotiation company to pay on the debt you’re trying to get out from under.
Self-Help Credit Card Debt Negotiation Strategy
If your credit card bills are current, but you won’t be able to make the current payment because of unforeseen emergency, tell the credit card company as soon as you know there will be a problem. Cite the good record you’ve had with them. Let them know that for the next say, three months, you’ll only be able to pay half the amount you have paid.
Also discuss permanent or temporary lowering of interest rates. If agreed, both parties can sign a contract stating that interest rates will be lowered for a certain amount of time to help you catch up with payments.
Other solutions are reversing late charges or reducing the amount of payments for a certain time. Extending loans can also help make payments lower, though you will end up paying more interest in the long run.
The key to successful “do it yourself” credit card debt negotiation is to come prepared and not to back down. Explain to your creditors right up front what your situation is and how you believe that things can be worked out so that everyone will benefit.