subject: Fight Credit Card Companies And Negotiate Your Debt – Why To Not Go In Alone [print this page] Fight Credit Card Companies And Negotiate Your Debt Why To Not Go In Alone
Are you one of the many Americans who are drowning in a sea of credit card debt? So many people have thousands of dollars in credit card debt and can barely make the minimum monthly payments. Since the credit card companies have increased the minimum monthly payment amount, numerous families have fallen behind on their credit card payments.
People often find themselves searching for ways to consolidate debt so they contact their credit card companies to try and negotiate with them. If you're considering debt consolidation, don't attempt to navigate this task by yourself.
By chance, you may have seen or heard of companies who'll arrange with your creditors, on your behalf, reduced payments and a lower interest rate. You can hardly avoid the advertisements on television about consumer credit organizations, debt counseling companies and credit management consultants. The issue is, are these credit counseling companies for real?
Some companies claim to help make deals with creditors, they may be dishonest and try to scam you, but in reality, several companies do exist that can really help to get your financial situation back on track. Many credit card companies will strike agreements with such organizations to waive late fees and charges for being over the limit on the credit card. Your interest rate can be lowered from over 20% to a more reasonable rate of 8% or 10%.
The reason a credit card company may be willing to enter into an agreement with a debt consolidation company is to insure they'll keep on receiving money towards your debt. When people get behind on their payments, they come closer to defaulting. Plus, the borrower is more prone to file for bankruptcy, the further behind they become on their debts.
Credit card companies know they'll receive little or no money from a bankruptcy settlement. By working with a debt consolidation company, many people discover they're able to regain control over their finances and credit card companies can collect most of the money due them.
Contacting the credit card companies on your own doesn't always give you the leverage you must have to negotiate the best deal with them. Before choosing a debt consolidation company, do your research to find one who's reputable. Find a company that's the right fit for your situation, do what it takes to work with them to put together reasonable payments and craft a plan to help you get out of debt. Remember, when you start to feel overwhelmed by debt, you do have options. You don't have to try and resolve it alone.
