This article, entitled Negotiate Credit Card Debt – 8 Tips That Really Help comes from SingleMomFinancialHelp.com.
As a single mother, have you incurred credit card debt but don’t know how to get out of it? As a single mother, paying off your credit card debt can be extremely difficult, but you can take the help of various debt relief programs such as credit card debt settlement, credit card debt consolidation, etc., to reduce your debt load. There are a wide variety of companies that offer these programs. The counselors of these companies negotiate with the creditors to reduce the total amount of your debt or the interest rate on your cards.
It is important to remember that these companies (credit card debt settlement, credit card debt consolidation, etc) are here for business and not for charity. These companies charge fees for their services. But why should you take the help of these companies if you can negotiate with the creditors on your own. Let me share with you 8 tips that can help you negotiate with the credit card companies.
You can use these following tips while negotiating with your creditors.
1. Talk to the supervisor: You must negotiate with the creditors to reduce the interest rate of the loans. You can talk to the supervisor of the credit card company and tell him that you can’t pay such a high rate of interest.
2. Negotiate to reduce rates/payoff amount: Generally, the creditors refuse to reduce the interest rate of the outstanding debt. You must tell them that you will be compelled to go with one of their competitors if they don’t reduce the interest rate on your debt. In such a scenario, you may try to negotiate a lower payoff amount (sometimes as low as 40%).
3. Write a good hardship letter: You must give a brief description of your hardship circumstances in the letter. You should specify the amount of money that you can afford to pay to them and the date by which you can make the payments to them.
4. Negotiate a “Paid in full” status: You must negotiate with the creditors to report your account status to the credit bureaus as “Paid in full” before making any kind of payment.
5. Negotiate to remove late fees: You can negotiate with the creditors to remove the late payment fees and ATM withdrawal fees.
6. Get everything in writing: You should get the negotiated deal in writing. You should read the written agreement in detail.
7. Speak politely: You should speak politely with your creditors or else they may even refuse to talk with you.
8. Record your conversation: You should record your conversation with the creditors so that they can’t deny what they have agreed to.
Finally, if the creditors refuse to negotiate a lower payoff amount, then you can either transfer your balance to a 0% credit card or can take a credit card debt consolidation loan.
For more information please visit www.singlemomfinancialhelp.com/