So many Americans are struggling with overwhelming credit card debt and many are finding themselves experiencing significant consequences at the hands of that debt load. Fortunately, there are several options available to help get yourself out of debt. Credit card negotiations can be a great tool when looking to reduce your debts without the need for bankruptcy protection.
Communicate Your Needs and Intentions
The first step to negotiating with creditors is to examine your financial situation to determine how much you can realistically afford to pay creditors each month. Once you have an idea of your budget, sit down and write a letter to your creditor. The letter should include information about your account such as how much you owe, how much you have been paying, the number of missed payments, etc. It is a good idea to write your letter before you have missed too many payments. Although you want to show that you are in need, you don’t want the creditor to think that you are irresponsible or a risk.
You should also include a description of your financial situation that outlines why you are experiencing difficulty paying your debts each month. Although explaining your financial situation such as a divorce, death in the family or job loss may not be comfortable, it can significantly improve your chances of a successful negotiation. You don’t need to be too personal, just give an overview of what has changed to impact your finances in a significant way. It is also a good idea to include a proposed payment plan that your budget will allow in the plan as well. This shows the creditor of your intention to pay your debts and provides a starting point for the negotiation.