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HOW TO RE-NEGOTIATE YOUR CREDIT CARD
DEBT BY YOURSELF
Before you realise it you will be in a
huge pile of credit card debt and
drowning quickly. It only takes a big
medical bill or a job loss or any other
unforeseen setbacks or expenses to get
you on to a trail of high interest
payments resulting in financial ruin at
the end. However, the first step to get
out of it is to realise that you are in
it and making conscious efforts to get
out of it. There are many companies
which will re – negotiate your credit
card debt for you but if you have a
little knowledge you can do it your
self. This is better because the
companies can ruin your credit score
easily and quickly and also charge a
high fee.
You have three ways to re - negotiate
your credit card debt and bring it down.
First you have to make them reduce the
APR, then reduce the monthly instalments
or lastly, ask them to reduce the money
that you owe them. The option that you
need to choose depends on how deep you
are in debt and how capable you are to
pay them back.
First try for a Lower APR
A high APR rate will keep you in debt
for a very long time as most of your
monthly payment will go towards paying
the interest. Therefore, your principle
amount will reduce on very marginally
each month. Re – negotiating the APR
rate is also one of the easiest methods
to get rid of your debt quickly as there
is a lot of competition in this market.
Asking your company to reduce your
monthly payments will also work if you
are not behind on your payments. Being a
loyal customer will help you a lot to
lower your APR.
The best way to accomplish this task is
to call the bank and tell them about the
other better offer that you have got
from the other credit card company. Tell
them that you would go in for a balance
transfer if they do not offer a better
APR. However, if you have not made your
payments religiously then this is not an
option for you.
Try to re – negotiate a lower monthly
payment
If you are making late payments then one
way to lessen your burden is to
re-negotiate your instalments. The
primary aim is lowering your instalments
so that you don’t have to use another
credit card to pay for your living.
However, this method will increase the
tenure of your debt. You have to be
ready with your reasons before making
the call to the credit card company.
Negotiating the sum of your debt
If you are referred to the collection
agency then your only option is to
negotiate a lower sum to repay. The
company will most probably accept this
option if you are ready to pay your
entire debt in one shot with one
payment.
This happens because the collection
agency has to collect some amount of
money from you. |
