Can Somebody Give Me Some Credit Card Negotiating Tips?
Posted on
June 19, 2009
at
5:34 am
I'd rather do my own credit card negotiation. Somebody told me that I could enroll in a debt settlement program but that's going to cost me right? So I'd appreciate it if anybody can give me credit card negotiating tips. Thank you!
Em Rep Points:
Posted on
June 19, 2009
at
5:38 am
Yes enrollment in a debt settlement program would cost you about 15% of your total debt but you won't have to haggle with the creditors regarding the reduction of your debt.Anyway, when you speak with your creditor, try to ask if they can lower the interest rate or if they can freeze it.
Posted on
June 19, 2009
at
5:53 am
You may also request for certain fees to be waived. Don't be discouraged if it gets turned down. You'd never know until you try. It might be tough to ask them if they'd allow you to pay under a plan. Again if you have a good history with them that's an advantage, if not, try still, I''m sure that they'd rather get their money any way they could than not all.
Posted on
June 19, 2009
at
5:57 am
With regards to the principal amount of your debt, try to pull it down to at least 40% of its original balance. Some would say that if the creditor calls you first, it means that they are willing to negotiate, so if they give you an offer that is higher than that, turn it down until the offer is at least at 50%
Posted on
June 19, 2009
at
6:02 am
Just a reminder, since you are doing this on your own, get all agreements into writing. Save all the documents and transactions pertaining to this debt. You'd want to protect yourself from collection calls later on.
Posted on
June 19, 2009
at
6:12 am
It might actually be a better decision to negotiate your credit card debt on your own, as enrollment in a debt settlement program would cause you to stop all your payments to the creditor--and that would not be good on your credit report.Anyway, don't forget to ask the credit card company to list the debt as "paid" on your credit report once you're done with the payment.
Posted on
June 19, 2009
at
7:29 am
Citizenoftheplanet- your comment does not make any sense- creditors will not negotiate the principle amount of debt if the account is current (only interest rates). So, whether or not you hire a debt settlement company to work on your behalf or you negotiate on your own, the debts must be delinquent regardless and as a result will negatively effect your payment history.
Posted on
June 19, 2009
at
7:31 am
And, citizenoftheplanet, if you settle a credit card debt it will not show "paid" or "paid in full," and creditors will not agree to do this unless you have paid the debt off in full. Settled accounts will appear as "settled" or "settled for less than the full amount."
Posted on
June 22, 2009
at
2:57 am
Hi Steven, If I have just lost my job and my payments are still current, but I'm anticipating that I would be behind in the next few months until I get a job--and I want to call the creditors now, to let them know of my situation--did I understand you correctly when you said that I can only probably negotiate the interest rates, and not the principal amount, until my account becomes delinquent?
Posted on
June 22, 2009
at
4:25 am
Hyperballad~The start-up fee for a debt settlement company typically takes 15-25% of the entire loan balance, and that amount will be spread out in the duration of the payment program. That's how most debt settlement companies work--you're not necessarily asked to pay the lump sum of their fee right away.Yes, you can also negotiate with the creditor yourself. Thing is, they may offer you a payment plan--or a settlement offer--that may be too big for you to offer. It can be difficult to haggle with creditors or debt collection agencies, but if you choose to deal with them directly, make sure that all agreements between you and them are sent to you in writing.
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