subject: Credit Card Debt Secrets – What Credit Card Companies Don't Want You To Know [print this page] Did you know you can negotiate a debt solution with your credit card company if you find it hard to meet the monthly payments? You can do this yourself, but your chances for success are far higher if you use a debt settlement company. Before you rush off to phone your credit card company there are some things you should know about negotiating.
All credit card companies want is their money. So, if you are experiencing financial difficulty the credit card company may negotiate a deal (e.g., time, waive their fee or offer a debt reduction) to get their money. You do need to know what is negotiable and what is not.
If you are trying to reduce the total amount you owe on your credit cards then you can guarantee your credit rating will be ruined. So, you do not want to negotiate on the principal amount you spent to earn the debt. But, the interest, interest rate and fees are another matter. Credit card companies are open to negotiating these as long as you have a solid plan to pay off the principal debt on a regular basis. While a credit card company may not be happy about your attempt to negotiate a lower interest rate, they are more interested in recovering the principal debt and are realistic. Debt settlement companies can help you accomplish this goal, and meet the wishes of your credit card company.
Take a look at your interest rate set by your credit card company. What is it? If it is more than 10% then there should be room to negotiate. Give a debt settlement company a call and have a chat with them, as they should be able to effectively negotiate with your card provider. Just remember that paying off the principal is the most important thing. Think about this, someone who threatens to pay off their credit card and cancel the account if they don't get a lower interest rate will probably get a lower interest rate pretty quickly.
Credit Card Companies make Money from your Debt
All credit card companies care about is getting paid and making money. They will not go out of their way to help you. Be realistic. It is up to you to contact the credit card company and let them know you are in financial trouble. They will listen and often negotiate with you if you call them with a plan. Essentially, credit card companies want you to be in debt, this is how they make their money.
If you have insurmountable credit card debt then call your credit card lender and discuss the alternatives to help you pay off the principal in full. Where lenders get nasty is if you try to avoid your debt by crying poor, even if you are genuine. If you tell your creditors you want to pay what you owe this will go a long way to getting them to agree to a payment plan that helps you to achieve this.
When you start worrying about how you are going to meet the payments on your unsecured debt, then that is the time to start reducing your debt. It is a warning sign to take action, and the first step to make is to get in touch with a debt settlement company to help you through the process.
Credit Card Debt Secrets What Credit Card Companies Don't Want You To Know
