It is very simple to begin drowning in debt with credit cards very easily. All that is needed are job loss, huge medical bills, and some other unexpected setbacks and expenses which could lead into very high interest rates and eventually financial ruin. Fortunately, there is a possible way out. Credit card debts are negotiable.
Call the company
This is the best method to negotiate about your debt. There actually are numerous companies that accommodate debt consolidation; however, when you do not know which among the many you could make use of, they could charge unnecessary fees and even ruin your own credit score.
Negotiate for a lower APR
A very high APR could imply that you’ll be in debt for long. The probability of going out of the debt situation is low because you will just be spending your money paying interest and not the principal amount. The good news is APR is the simplest thing to make negotiations with the company due to the present competition within the credit card industry.
Negotiate for a lower monthly payment
When you are always late for the card bills but have not been transferred to an agency for collection yet, the most certain method to get away from a few of your burdens is to try to negotiate about regular monthly payments. The aim is to lower the payment. Just be cautious about paying less every month because this could also mean paying for a longer period of time.
Negotiate for a lower debt
If you have been referred to a collection agency already, this means that you are always behind your payments and making negotiations of lowering your debt may be a viable option. When you are permitted to go for a lump sum for a particular debt percentage, the credit card company will most likely accept this.
This is due to the fact that if the account is in the hands of a collection agency already, the aim of this collection body is just to receive some amount of payment from you. While your account is past due and the chances of the collection agency of receiving money from you is now lesser, they will most probably offer a settlement agreement. The reality that the account is past due is enough proof that you may be one of those high risks for no payment.
While this might appear as a simple way out, you must not allow the account to go straight into a collection body’s hands. Debt negotiations are included in your credit reports and may include the exact negotiated amount. This could worsen your own credit score and could make future loans more expensive and harder to acquire.