subject: Credit Card Negotiations - How To Talk And Negotiate Your Debt With Credit Card Companies [print this page] With the struggling economy presently, many people may benefit by using credit cards in times when they don't have their paycheck yet. However, there are also some who find themselves buried in accumulated credit card debts. If you want to improve your credit score through credit card debt settlement, you can do so by knowing how to eliminate debt and negotiating with your credit card companies.
Credit cards can be a pain in the neck, if not dealt with in the best way, which is to pay the whole amount due every month. Paying the minimum amount can only cause you more debts in the future because of the high rate of interest. You can get out of debt fast if you prioritize paying what is due on your credit card over other things that aren't necessities. Talking with credit card companies are not only done when the credit card holder is delinquent but also when you want a better monthly payment schedule, request a waiver of annual dues and other fees or even to seek debt consolidation advice if you maintain many accounts.
You can master credit card negotiations by following 4 easy steps
1. Communicate your current financial capability clearly to the credit card company. Give precise figures and not mere estimates. You should have thoroughly studied your cash flow before you give your credit card company a call. You must be certain that you can indeed pay the amount that you would propose to the credit card company so not to have your reputation ruined.
Some people fail in negotiations because before they even get into the negotiation process, they already fear that the credit card company will reject their offer. Even if you can only afford to pay a small amount, you should not hesitate on making a proposal of paying that amount since the credit card company may be able work with you on some schedule to pay off credit card debt that will benefit you both.
2. Lay down the problem and your proposed solution. In this step, you can start by calling the credit card company first then follow up by sending a letter and supporting paperwork to prove your credibility. Also do not be afraid to ask for help in matters like continuation of penalties. Lastly, you need to use your past dealings with the company which has been good like paying your dues on time or ahead of time.
3. When calling the credit card company, you must not be hostile, since good relationship must be established. It will give you an edge in getting favorable response to your situation. You should make it a point to be honest in everything you will be saying. The conversation must be mutual so listening on your part must be present as well. Before you make your proposal, ensure that the one you are talking too is capable of making the decision on whether to accept or reject your proposal. If the answer is no, ask politely if your call can be transferred so that you can talk to higher authority. The supervisors may have more dealing power, thus, may be able to help you find the debt relief solutions suitable to your case.
4. Make the necessary and regular follow-ups. Send the letter and other documents that you promised to mail during your debt settlement conversation. In said letter, include all your contact details that can help them to easily get in touch with you if the need arises. Never forget to keep the return cards for your communications.
