Credit card companies are ruthless; they do not care about people or faces, just numbers and money. They will do just about anything to get what money they “deserve”. The best way to handle this situation is to not get into credit card debt in the first place, but that is not always an option. If you are in credit card debt up to your eyeballs and you are struggling to make your monthly payments and keep your head above water, you should consider credit card debt negotiation.
The first thing you need to do is call your credit card company. There is no way getting around this, no one likes to talk to their creditors unless they have to, but this is something that has to be done if you want better terms or a better chance at paying off your credit card debt. Make sure you get on the line with someone who exactly has the authority to help you. If the person you are speaking to on the other line of the phone does not speak your language or you spend more than 10-15 minutes on the line with them without getting anywhere, do not be afraid to ask to speak to someone else. Make sure you remember the name of the person you are on the phone with, this could potentially help you out down the road. It is also important to remember when you spoke to the person, writing their name, title, and time on a sheet of paper is a good idea.
While you are on the phone with the credit card company in credit card debt negotiation process the best thing you can be is completely honest. If you have missed payments or you are struggling to make minimum monthly payments be honest and straightforward. Try to avoid making excuses for why you cannot make your payments, excuses will get you nowhere. Do not get frustrated, do not cry or plead, or ask for pity, just give the person you are on the phone with your financial story and explain to them why debt negotiation is a must for you.
Once you get on the phone with someone who can actually help you it is important to tread carefully. The worst thing you can do is throw out crazy numbers early, if you owe the credit card company 8,000 dollars do not offer to settle for $1,500. It will be easier for you to negotiate the APR you pay on your balance and purchases and the fees you pay than it will the actual principle you owe. Credit card companies are generally open to lowering your APR, monthly minimum payment and fees but they do not like to settle for thousands of dollars less than what they are owed.
Remember that the person you are on the phone with has every reason to want to negotiate your debt with you. Credit card companies would rather get a portion of what they are owed than nothing at all, often times their customers decide to go with debt consolidation which is even worse for credit card companies than debt negotiation.
The old saying “cash is king” is very true in this circumstance. The best thing you can have on your side is a lump sum pile of cash to offer the credit card company. Even if it is just a portion of what you owe, a few thousand dollars that you were able to scrounge up here or there, it will make a large difference. Cash can get you out of a lot of tough situations financially, this is one of them. Do [almost] whatever it takes to scrounge up the cash, pick up a part time job, make serious cuts in your budget, and devote all of your tax refund to helping you with your debt negotiation…
Being in credit card debt is no joke, you will not get out of this situation by accident, you will have to work for it. Credit card companies are not charities, they have shareholders, managers, CEO’s and board members to make happy, the only way to please all of these people is to make a lot of money. You can get yourself out of this situation, but credit card debt negotiation is not easy!