You signed up for credit cards to help you out of your financial situation, but now your cards have created a financial mess of their own. What are the possibilities to escape? Fortunately, credit negotiation is not as difficult as you might think, and if done properly can greatly alleviate your financial predicament. By taking an active approach to credit negotiation, you can accelerate the debt reduction process.
Credit Tips to Help You Regain Control
By taking advantage of these credit tips, you can positively influence your short-term and long-term financial health. Credit negotiation with your credit card company can impact your credit score as well as the amount that you owe in taxes. Consider these tips during your credit negotiation process.
1. Collect a record of credit card offers. By keeping a collection of credit card offers and their interest rates, you can use this during the credit negotiation process to prove to your credit card company that you can move elsewhere if they don’t match competing offers.
2. Ask for a supervisor. When you call a credit card company, the first person you’re going to speak with is going to be a customer service representative. Asking to speak with a supervisor is one of the most important credit tips because you will be able to speak directly with someone who can negotiate rates with you. Remember, the supervisors have more authority than normal representatives to change your rates.
3. Document everything. If you’re able to successfully negotiate over the phone, try to document the time you called, who you spoke with, and ask for written documentation of the credit negotiation. If possible, try to record the conversation. This way, if there’s ever a dispute about the terms derived from the credit negotiation, your case is proved.
4. Transfer your debt. If credit negotiation doesn’t work, then remember all those offers you collected from credit tip number 1? Transfer your debt to one of them. This is one of those credit tips that should only be employed if all else has failed.
5. Ask for a forbearance program. If you’ve struggled temporarily but imagine yourself being more financially stable in a few months, a credit negotiation for a forbearance program might be the best choice for you. This offers you a few months to recover financially without having to worry about outstanding bills.