These days just about everyone has some level of credit debt. While credit debt can be a good thing, there is a fine line between credit boosting debt and credit destroying debt. The one thing about all credit debt is that it is negotiable, and you don’t even have to be suffering a financial hardship to get a better deal from creditors.
Let’s Make A Deal
There are two reasons you may want to negotiate with creditors, to make your payments more affordable or to save money. If you are under financial distress, credit negotiations can be a great tool for lowering your monthly payment and resolving the threat of default. Credit negotiations can help you find an affordable payment through lowering the minimum payment requirement, waiving penalty fees, and even reducing the overall amount you owe. The key is to know what you can afford to pay each month before you contact your creditor to negotiate.
If you want to negotiate your credit card terms to save money, you may have a bit more of a challenge ahead. However, it is certainly far from impossible. Many lenders will be willing to lower your interest rate, raise your spending limit and even reduce your annual fees. All you have to do is ask. Of course, it helps if you have a good case to support your claim as a responsible borrower. Mention the fact you have never missed or been late on a payment, or at least for 6 or more months. If you pay more than the minimum payment or use an automatic payment draft, those are also viewed favorably by your creditor. Contact your lender and discuss ways they can reward you for your great efforts as a borrower.