So many of us have loads of credit card debt. When the bills pile up, many of us are left feeling trapped and hopeless. But don’t worry, there is something you can do to take back control.
Have you ever heard of a credit card negotiation? Ever wonder if this is a myth? Actually, many creditors’ books are open to negotiation, as creditors are under pressure from federal regulators to put their houses in order. They are limiting their liability to federal investigation by quashing their clients’ debt obligations. You to need ask first, “How can I help myself?”
Negotiate a reduced, lump-sum payment with your creditor
If you have missed three or more payments in a row and/or can only pay on the monthly interest, contact your creditor and see if they will settle for a lump sum payment that will be fraction of what you now owe. Depending on the creditor, you may be eligible to pay less than 50% of you owe the credit card company. These negotiations can be frustrating and daunting for those who don’t know how to navigate the complicated credit system, so consider contacting a professional credit negotiator.
Settle high interest rate credit cards first
Be sure to settle your high interest credit cards first. For people with a fixed income, high interest rate credit cards can evolve into a decades-long struggle to pay down. This will eventually cost them thousands of dollars in monthly interest payments and penalties.
Some credit card companies will accept a mere 30% of what the borrower owes. Many will cancel monthly late fees and interest, so that the creditor can recoup what was borrowed more quickly. This can mean the end of that credit line, and you may be reported to a credit reporting bureau, thereby hurting your ability to borrow in the future.