Debt Consolidation ? Can You Negotiate with Your Credit Card Company?

The average American household has nearly $10,000 in credit card debt, and many people are only able to make the minimum payment of 2% of the balance. Even 2% is $200, and by paying the minimum payment, you could be paying on the balance for decades before you finally pay it off. Since new legislation will make it more difficult to file for bankruptcy, it may occur to savvy debtors to try to negotiate a better deal with their credit card company in order to make it easier to pay off the balance. Is this possible?

It might be possible, depending on your credit history, interest rate, and current balance. Your best bet, especially if you have a history of paying on time, is to simply call your credit card company and ask if they will lower your interest rate. They might, especially if you tell them that you got a better offer from another bank. If you have a history of paying late, however, they probably will not be willing to lower your interest rate. That's unfortunate, since paying late has probably prompted the credit card company to raise your interest rate in the first place. Still, it's worth a phone call; you may get lucky.

If you've been paying your bills on time, asking for a lower interest rate may be the only option available to you. The credit card companies aren't going to be too sympathetic to your financial woes if they're receiving payment on time. On the other hand, if you're late on your payments, especially if you're more than three months behind, you may have some negotiating leverage. That leverage comes with a few strings attached, however. You may be able to negotiate a lump-sum settlement for your outstanding balance, where the credit card company accepts a portion of your debt and writes off the rest. They're often willing to do this instead of turning your debt over to a collection agency, as it's cheaper just to settle. The settlement amount will vary, depending on your interest rate, your balance and your payment history. This type of settlement comes with a couple of problems of its own, though. What if you don't have the money to settle all at once? If you can't pay your bills on time, you probably don't have the cash to settle at once. Additionally, the amount of your debt that gets written off will show up on your credit report as bad debt, and that will stay there for seven years.

Your credit card company may or may not be willing to work out a payment plan, but it costs you nothing to ask them, and negotiating a settlement with them may be cheaper for you than if you consult with a debt consolidation firm. If your credit card debt is substantial and you just can't make the payments, it's worth a try.

©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and StructuredSettlementHelp.com, a site devoted to information regarding structured settlements.

---

Debt consolidation ? Options for Reducing Credit Card Costs

Americans are using credit cards more than at any time... Read More

Perks and Pitfalls of Debt Consolidation

Whether you want to pursue debt consolidation in order to... Read More

Why Choose a Debt Consolidation Loan?

Are you wondering why choose a debt consolidation loan? If... Read More

Debt Consolidation when You Find Yourself Overwhelmed with Bills, Bills, and More Bills

Many of us find ourselves overwhelmed with bills, bills, bills.... Read More

Thinking Beyond Debt Consolidation Loans

Planning to devise a permanent solution to the problems of... Read More

Credit Card Purgatory - A 7 Step Comprehensive Plan to Get and Stay out of Credit Card Hell

Does this Sound like You? There are 100 shopping Days... Read More

What You Need to Know About Debt Consolidation Loans UK

Should you find yourself over your head in debt, you... Read More

Debt Consolidation Makes Sense Only with Low Interest Rates

Credit that cannot be managed or is not being repaid... Read More

Cutting Your Monthly Outgoing With Debt Consolidation

With consumer debt on the rise, many people have found... Read More

Consolidate Your Credit Card Debt

With the popularity of plastic money in the present age,... Read More

What Is A Debt Consolidation Program?

Debt consolidation programs are devised to get you out of... Read More

How To Get Rid Of Debt Problems Step 4 -- How To Get Interest On Your Debts Frozen

The first thing to understand is that there is categorically... Read More

How To Get Rid Of Debt Problems Step 2 -- How To Prepare A Financial Statement

Here is how to prepare a financial statement, for the... Read More

Debt a Glossary of Terms

Bankruptcy - Having been legally declared financially insolvent. There are... Read More

What is Debt Consolidation?

Here is a useful guide to what is Debt consolidation.... Read More

Debt Consolidation: How it Works

As long as consumerism flourishes most of us will be... Read More

Negotiate Your Way Out Of Debt

Eliminating your debt is a daunting task. What can you... Read More

Debt Consolidation Mortgage - Decode Its Apparent Complexity

Someone great once said that 'if it isn't the sheriff,... Read More

Debt Consolidation Loan and Consolidation Loans

Debt consolidation loan services act as a third party intermediary... Read More

Re-Mortgages ? There?s Help For Bad Credit Ratings On The Way

As any report on the subject will reveal, million of... Read More

Going Debt Consolidation Way!

We are aware of the fact that it is easy... Read More

Financial Aid - When Should I Apply For?

Many different types of financial aid are available to you... Read More

Debt Elimination: Legal! Lawful! Ethical! Debt Elimination Really Works

You are trying hard to eliminate your loans but keep... Read More

Shocking Facts - What Debt Settlement Companies Dont Tell You

If you're thinking about using a debt consolidation or debt... Read More

Best Debt Reduction Service

There was a time when incurring debts was looked down... Read More

Bad Credit Debt Consolidation Loans - Getting a Debt Consolidation Loan, Even With Poor Credit

An online debt consolidation loan allows even people with a... Read More

Debt Consolidation can Ruin Your Credit

Yes, Debt Cosolidation isn't a good idea and I'll tell... Read More

Student Loan Consolidation

Student loan consolidation is one of the most used methods... Read More

Avoid Bankruptcy

The first but definitely not the easiest thought that comes... Read More

Private Student Loans ? Dispelling The Myths

Private Student Loans ? dispelling the mythsIf savings, grants, scholarships,... Read More

Planning To Become Debt Free With A Consolidation Loan

If you have multiple debts, and are struggling to meet... Read More

Debt Elimination 4

Planning For Debt Elimination Without Surplus CashPreviously we looked at... Read More

Debt Consolidation Primer ? Four Things You Can Do to Get Out of Debt

Problem debt is rampant throughout America. In addition to mortgages... Read More