Negotiating Credit Card Debt- How To Negotiate Credit Card Debt

If you have changed your cell phone number numerous times to avoid getting calls from debt collectors, you should consider negotiating credit card debt.  If you throw most of your mail away because it contains threatening letters from credit card companies, you should be aware that most credit card companies will allow you to make payment arrangements.  Credit card companies cannot garnish your wages or take possession of your house.  The companies send official looking letters that claim that they will sue you or take your house, but this is not true.  Most credit card companies will not sue unless they are fairly sure you will be able to pay them.  

The first step to negotiating credit card debt is to call the credit card company directly.  Don’t contact the attorney or debt collector’s office regarding the debt.  When you call the credit card company, you should have your current account statement in front of you.  Explain to the credit card company that you need to make debt negotiations.  You should have already figured out what you can afford to pay each month.  It is best if you are prepared to make a small payment over the phone to show the credit card company that you are serious.   

The credit card company will be happy that you have contacted them and made a small initial payment.  The next step in negotiating credit card debt is to write a letter detailing the terms of your payment arrangements.  You can also ask for the interest rates to be lowered or stopped altogether.  The credit card company may do this because they just want to be paid something.  For example, if you owe $1000 dollars to a credit card company, you may be able to get them to agree that the debt is considered repaid in full when you pay only $500 dollars.   

Don’t cower from your credit card bills.  Credit card companies are aware that many people are without work today and need help.  The key to getting a good deal when you are negotiating credit card debt is to stand your ground and ask for reasonable solution.  When you offer to pay something over the phone, the credit card company will normally approve your payment terms.  Most credit cards come with such high interest rates that credit card companies have already made money if you have made some payments to them.    If you cannot get a credit card company to agree to what you are asking, ask to speak to a supervisor at the company.