Credit Card Debt Relief

Calling the credit card company and asking for a compromise or a payment plan to get some debt relief is a bit hard. But proper planning can help you solve this problem. The way you discuss the matter counts a lot. Their willingness to work with you might be surprise for you.

How to Contact a Credit Card Company?

You need to be honest and fair while calling a credit card company and asking for debt relief. There is no need to beseech whether you are asking them for a favor, a lower interest rate, lower payments or waiver of late fees, in fact discuss your problem in a normal way will surely bring positive result. If you work the phones all day at a credit card company, you would rather spend time helping a nice, polite person than dealing with an angry one.

Choose a Best Person for Discussion

Your first and foremost action will be to decide, with whom you are going to discuss your matter? The first live person may not be able to change the terms of your card, but he can transfer you to a supervisor or another rightful person.

Discussing Your Financial Problems

Credit Card Debt Relief

If you succeed to approach someone who can help you, explain him fairly your financial problems. Discussing your troubles like dismissal from job or suffering a major illness does not mean at all that you are going to gain any sympathy. Instead, you are trying to help the credit card company understand the severity of your problem. If you have been fired and expect to find a new job in the next few months, that’s a different situation rather than if you are suddenly disabled and almost penniless.

Suggesting the Possibilities

Whatever the situation is, you will have to suggest some solutions. If you have made an estimation of your new monthly payments, that may be less than the minimum payment, suggest paying that amount. If your financial condition does not allow you to pay any installment but you have an idea to pay it later on, inform them. Assure them that you will soon get another job, or will get an insurance settlement.

If you are expecting bankruptcy, do mention it so that the credit card company may have an idea of getting nothing if that happens.

Late Fees and Reduction

In order to assure the credit card company of your current financial crises, give them as much information as they require. If they agree to accept lower payments, find out whether they are willing to waive late fee, as you are trying your level best to pay. Reduction in interest rate depends upon their will.

late fees

Asking for Debt

Your card may be closed for new charges, but there is no need to worry about that. Another important thing you need to do is to add more debt now. If you have been paying your previous debts on time, do not forget to remind the representative that you have been a regular debt payer, since the current problems began; that might support your case.

Debt Relief Places

This is something incredibly difficult. That’s why people pay a lot to debt relief places so that they may handle this kind of problems. It is better if you do it on your own. In this way you will not only save the cost of paying someone else, but can stay in control of your own finances also.

Some Important Points

Always keep in mind some points when you are dealing with them on phone.

How to behave?

First of all never lose temper, instead stay calm. Remember, this is just business to them so you are also supposed to secretly pretend the same; whether you are negotiating on behalf of someone else or talking about your own problems.

Convincing a Representative

They will cut you slack out of the goodness of their hearts, because for them it’s the easiest way to get the most money out of you. They will try to give their own excuses and will argue a lot. So, instead of pleading or crying, explain sincerely how few assets and little income you have. You may also offer to send them some proofs. This will surely frighten and alarm them and will definitely lead them to think that some thing is better than nothing, if you declare bankruptcy. If it is not possible to convince the credit card representative, see if they are willing to make a counter-offer. You may also ask politely for someone else, who might be able to guide.

Written Agreement

After the conversation if you are successful in making any deal, get the name and phone number of the person you spoke with, and ask for a written agreement. You may also send a letter outlining what you agreed to, after having the exact mailing address.

Try to Settle Your Debt

After the agreement is finalized, start making the agreed payments. It will be beneficial if you keep in touch with the credit card company. Keep on informing them about changes in your financial situation. Receiving a lump sum payment such as an insurance settlement means that you are able to pay some of your debts but not all. Try to inquire if your credit card company would be willing to declare your debt paid in full, if you pay them a lump sum that is less than the full amount.

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