Can I Negotiate Credit Card Debt Reduction on My Own?

This is a question that has come up many times before, and the answer is that you can!  The problem lies in the fact that people oftentimes become intimidated by the thought of going against a large credit card company. But, this is the wrong mindset, in actuality debt negotiation is not just beneficial for the debtor but for the credit card companies as well; as they have a higher probability of re-couping part or all of the amount owed in comparison to the amount they would receive if the debtor filed for bankruptcy.

Am I a good candidate for negotiating my own debt?

If you have been making regular payments but see that you will be falling behind sometime in the future then you are in a prime position to negotiate with the companies to reduce your interest rates. On average a cardholder that negotiates with the credit card company receives an interest rate reduction of 7-10% on their interest rates. We must note that normally credit card companies are not willing to consider negotiations with a consumer who has already defaulted repeatedly on credit card payments, but most companies are not enforcing this provision as much due to the state of our economy.

To get the process started you will need to find out if you’re credit card company is open to negotiations and this can be accomplished simply by asking them in a phone call. If they are willing to negotiate, some of the possible solutions they could offer include:

       ▫Offering temporary “hardship” to help lower monthly payments

       ▫Reduction on the amount of the debt. *Will require additional information such as proof of income, bank statements or tax returns*

       ▫Lump sum payment– Saves you the most money in interest, and principal payments

       ▫Set up a new payment plan (loan modification)

In the negotiation game, the key is to be strategic by initially asking for a larger reduction as you can always agree to settle for a smaller one. Negotiating with the credit card companies on your own behalf is not the daunting task that it may seem to be. With a plan of action, persistence, decent credit score and a good payment history you should have no problems with negotiations.  Even if you’ve been unable to keep up with your payments, it’s worth making a phone call to see if there’s anything that the credit card company can do to help you out.