Credit card negotiation

1

Use the software on your computer to set up a spreadsheet program to track your negotiations. Include dates, people spoken to, and what was said. This will be an ongoing process to fix your credit so you want to keep good records. It’s important to take each credit card, determine what interest rate you’re paying and what your payoff and current credit card payment is.

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  Step 2
  Obtain a copy of your credit report from all three reporting agencies, Equifax, Experian, and Transunion. You'll need to know if you have any reported late payments as this will make your negotiating position weaker. If you’ve been a long standing customer with a good credit card payment record uses that as a negotiating point. If you’re already delinquent and falling farther behind each on your credit card payments month use that. Getting a drop in your interest rate can decrease your payment and save you money
  
  Your conversation with the credit card companies could sound something like this, “My name is_____, I’d like to talk to someone about my credit card balance. I’m falling farther and farther behind. I’m looking at possible bankruptcy. Can we negotiate a lower interest rate to lower my payment to something I can afford?” All they can do is say no, but often they say yes.
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  Step 3
  After you've gathered your information, (if you’re not computer savvy it's O.K. to just use a spiral notebook but do keep written record of all conversations) Pick a creditor your credit card payment record has been good with for at least 6 months. (Department stores won’t usually work with you on this) Call and ask to speak to a supervisor if at all possible. Explain your good payment record, and ask to have your interest rate decreased to 0%. They probably won't do this but will offer to drop it 1% instead. Take the offer. Record it all in your notebook and repeat this process with the next creditor.
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  Step 4
  Persistence and good record keeping is the key to this process. If the first credit card company person you talk to won’t help you ask for a supervisor. If they won’t help you, hang up and try again in a few days. You can save a good deal of money for your work and effort and certainly nothings lost by trying. Unfortunately credit card companies aren’t very willing to work with you sometimes. If that proves to is the case talk to consumer credit services. Be careful to do your research as there are many debt relief scams out there. Check with the better business bureau before signing with anyone
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  Step 5
  After a couple of months, repeat the whole process again starting with the highest credit card interest rate. It's in their best interest to work with you as they lose much more if you become bankrupt or transfer your balance but as I said, sometimes they just won't work with you. When thats the case call consumer credit services and sit down for a talk.
  
  Another possible negotiating tool is new credit card offers that will accept transfer of balance at a lower interest rate. You can sometime use the offer with your current credit card company to get them to lower your credit card interest rate to a competitive level. If not, go ahead and transfer the balance. Just be sure you close the old accounts down after transferring those balances.
  
  You can save hundreds even thousands of dollars on your credit card debt with the simple technique of negotiating a lower credit card interest rate. It's certainly woth a try.