Business & Finance Credit

Can Credit Card Balances Be Negotiated?

    Lower Interest Rate

    • You may be bombarded with mail advertisements from credit card companies offering a low introductory rate if you transfer your balance from an existing card. Use these offers as a negotiating tool with your current company. Call the company and inform it of the offers and ask whether the company can match them. If the company agrees to lower your rate, you'll save money on interest charges and reduce your overall balance. If not, it may be time to make a switch, although you should first determine what the interest rate will be after the introductory period.

    Payment Plan

    • If you've fallen behind on your credit card payments, contact your credit card company to see if you can set up a modified payment plan. The company may agree to lower your payments and the total amount you owe, employing the logic that receiving some payment is better than nothing at all if you were to file for bankruptcy. Be prepared to give a reason for your financial difficulties, such as a job loss. It's also important to take this step quickly before the company turns your account over to a collection agency.

    Seeking Professional Help

    • If you're not comfortable with contacting your creditors or aren't having much success in your negotiations, consider seeking the assistance of a nonprofit credit counseling service. Credit counselors are trained in how to negotiate with creditors and they may be able to help you reduce your interest rates and set up a payment plan. They can also provide assistance in budgeting and money management.

    Debt Settlement

    • Another option is to enter a debt settlement arrangement where you negotiate to pay off your account for an amount less than what you owe. You can enlist the services of a debt settlement company, although the Federal Trade Commission warns that many of these companies are ineffective and in some cases, unscrupulous. Settling your debt can also lower your credit score, and the amount of debt you eliminate is usually considered as taxable income by the Internal Revenue Service.

SHARE
RELATED POSTS on "Business & Finance"
What Do You Need to Know About Credit Cards and Risk-Based Pricing?
What Do You Need to Know About Credit Cards and Risk-Based Pricing?
Firestone Credit Card Overview
Firestone Credit Card Overview
Statute of Limitations for Collecting a Credit Card Debt in the State of Ohio
Statute of Limitations for Collecting a Credit Card Debt in the State of Ohio
Where to Purchase Prepaid Credit Cards - Online and In-store Outlets
Where to Purchase Prepaid Credit Cards - Online and In-store Outlets
Why & How Do I Raise My Credit Score?
Why & How Do I Raise My Credit Score?
How to Reopen an Account that the Credit Card Company Closed
How to Reopen an Account that the Credit Card Company Closed
Benefit Of Clean Credit Report
Benefit Of Clean Credit Report
Is a Deceased Person's Estate Responsible for Back Taxes?
Is a Deceased Person's Estate Responsible for Back Taxes?
How to Save Money on Your Credit Cards
How to Save Money on Your Credit Cards
Credit Card Security Compliance
Credit Card Security Compliance
Personal Credit Report - Credit Reporting Data From Many Sources
Personal Credit Report - Credit Reporting Data From Many Sources
How Credit Counseling Helps You in Fixing Debts
How Credit Counseling Helps You in Fixing Debts
Trading Futures Using Price Action
Trading Futures Using Price Action
Using Credit Cards Efficiently
Using Credit Cards Efficiently
What Is a Nine-Month Interest-Free Credit Card Offer?
What Is a Nine-Month Interest-Free Credit Card Offer?
Raising Your Credit Score For Free
Raising Your Credit Score For Free
Been Bankrupt? How It Can Hurt Your Credit Score
Been Bankrupt? How It Can Hurt Your Credit Score
Debt Settlement Tips - How to Get Creditors to Accept Favorable Debt Settlement Deals
Debt Settlement Tips - How to Get Creditors to Accept Favorable Debt Settlement Deals
Some Thoughts on Credit Card Payment Services
Some Thoughts on Credit Card Payment Services
Can You Really Improve Your Credit Score in 24 Hours?
Can You Really Improve Your Credit Score in 24 Hours?

Leave Your Reply

*