Credit Card Negotiation

Hello,
I have right at $50K of credit card debt, I am not now or ever been behind in payments. I really don\'t want to go through the debt settlement process of being behind on payments. Right now, it is very difficult for me to make the minimum payments as I have been unemployed for almost a year and have just started a new job. Is it a good idea to contact the companies, close the accounts (I don;t really need them) and negotiate a payment that I can make now, with the plan to increase the payment amount as I make more money? Also, how about negotiating the interest rate? Any successful strategies?
Thanks in advance for any advic

3 Answers

Yes Kim, negotiating your interest rates on your own is certainly a good way of dealing with your high interest debts. Tell your creditors about your financial hardship and set up a budget so that you can show them your eagerness to repay your debts if the amount is reduced. Though this will also hurt your credit score as ultimately you'll repay an amount that is lower than what you actually owe, you can still save money on the unnecessary fees that may be charged by the company.


Some will accept a hardship payment plan...others will not.  They could end up throwing you into collections.  Either way it is going to tank your scorees.

How to Deal with Illegal Loans..OhioGal's Primer
http://www.debtconsolidationcare.com/paydayloan/dealingwith-illegallenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states
http://www.debtconsolidationcare.com/statute-of-limitation.html

It is always a good idea to negotiate with your creditors on your own. This will help you in saving money that you will have to pay otherwise pay as fees to the debt relief companies. You should cotact your bank manager and close down your bank account. Then you should contact your creditors and convince them about your financial hardship. Then you should negotiate with them for a payment plan which is affordable for you. You can even negotiate with the creditor regarding the interest rate. There is no special strategies for it. Your convincing power will help you in negotiating with the creditor.


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