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.

How To Get Non-Profit Credit Card Debt Consolidation Help
3x24 - Your Newspaper and News Magazine, Germany - Sep 2, 2008
Non-profit credit card debt consolidation services analyze your situation honestly, letting you know exactly what their debt elimination plan will cost you ...
Little Know Credit Card Debt Advice For College Students 3x24 - Your Newspaper and News Magazine
all 2 news articles

Debt Consolidation - How and When to Use it to Settle Debt
3x24 - Your Newspaper and News Magazine, Germany - Sep 2, 2008
Do not take on more debt until the debt you have is paid. Address what you can fix on your own and then look for help. Debt consolidation may be the answer ...

Credit Card Debt Consolidation Services: How They Operate
3x24 - Your Newspaper and News Magazine, Germany - Sep 2, 2008
The problem with using credit card debt consolidation services is that no one ever tells you how credit card debt consolidation services really work and ...

Who Will Benefit From A Non Profit Debt Consolidation Service?
Corsavoo.com, France - Aug 29, 2008
When you contact a non profit debt consolidation service, you will be seeking the advice of a Certified Credit Counselor. The counselor will help you design ...
Credit Card and Personal Debt Consolidation Loans -- the Real Answer? Corsavoo.com
Basic advice on destroying debt Corsavoo.com
all 3 news articles

The Realities About Bad Credit Debt Consolidation
Corsavoo.com, France - Aug 29, 2008
Debt Consolidation Companies: What Exactly Do They Do? Basically, what a bad credit consolidation company does is that it acts as your mediator. ...
Watch Out For The Pitfalls of Debt Consolidation Loans Corsavoo.com
all 2 news articles

Debt advisers encourage caution as Britain’s disposable incomes shrink
SourceWire (press release), UK - Sep 3, 2008
“For people with multiple debts who are getting by but want to simplify their finances, a debt consolidation loan could help. “Debt consolidation loans ...

Non Profit Debt Consolidation
3x24 - Your Newspaper and News Magazine, Germany - Aug 25, 2008
A common solution to debt issues is debt consolidation, and many of the organizations that have formed to help people consolidate their debts are non-profit ...
Car Financing For Anyone Dealing With Low Credit Scores 3x24 - Your Newspaper and News Magazine
Credit Card Debt: Having an Efficient Escape Plan 3x24 - Your Newspaper and News Magazine
Understanding How the New Bankruptcy Laws Work 3x24 - Your Newspaper and News Magazine
all 4 news articles

Best Syndication
Surrounded by debts, don't worry debt consolidation loans are here ...
Best Syndication, CA - Aug 26, 2008
For people like these, debt consolidation loans is the right medicine to recover from the above mentioned problem. Debt consolidation loans are the loans, ...
Debt and the Changing Face of the Credit Market Best Syndication
all 6 news articles

Why Should I Use A Non Profit Debt Consolidation Program?
Corsavoo.com, France - Aug 27, 2008
The idea of a non profit debt consolidation program should be to help the consumer become educated about how credit works and provide counseling to help ...

Best Syndication
Debt Consolidation and Debt Management Services
Contacto Magazine, CA - Aug 26, 2008
Two popular options for handling debt and credit problems today include debt consolidation and debt management. Debt Consolidation is the term used when ...
Loans for Bad Debt: Bad Debt No More A Problem Best Syndication
all 2 news articles

Wind Chimes and more...

Windchimes for great gifts!

Debt Relief From Debt Consolidation