How to Negotiate Credit Card Debt
โ
Imagine your house is on fire.
โ
You could either stand there and do nothing, or call for help and get some relief.
โ
Most people in credit card debt just stand there and watch their financial house burn. Let me tell you something.
โ
This is a grade-A financial emergency.
โ
Credit card debt is no joke. It is something that must be handled right away.
โ
You have to take action now. Today, I am going to teach you something that could save you thousands. So buckle up, because we are going to take on this debt together.
โ
Step 1: Make The Card Company Do The Work For You
โ
Most people are scared to face the facts. It is so much easier to pretend like your debt is not there. But, for most, they need to face their debt. โ
โ
Figure out how much debt you have. You can do this by calling the credit card companies to find out your total debt and interest rates on each card. Write these numbers down. We will need them to craft our debt plan.
โ
Step 2: Negotiate With The Card Companies
โ
Most people donโt realize they can do this. You can negotiate with your credit card company when you literally canโt pay off your debt. Let me give you a little script to use:
โ
โHey, Credit Cards Rโ US,
โ
I'm reaching out because I'm in a bit of a tough spot financially. The truth is, I really want to clear my debt and I'm committed to doing so, but with the current balance and my financial situation, it's becoming increasingly difficult to make the monthly payments of X amount.
โ
I believe in honoring my commitments and I'm keen to find a solution that works for both of us. Is there any possibility we can discuss a more feasible payment plan or even consider a settlement amount? My goal is to pay off what I owe, but at an amount that's manageable for me right now. Can we explore some options that might help in reducing the total balance to a level that I can realistically manage?
โ
Note: When you negotiate, do not get angry in the negotiation. Otherwise, you have lost. A negotiation is cooperative.
โ
Losers get mad, and winners find common ground.
โ
We have shown people how to do this and they have saved thousands on their credit card payments.
โ
If they do not want to reduce the total debt amount, I want you to then ask if they would reduce your monthly payment and more importantly the interest rate. Here is a script:
โ
"Hi there, I've been reviewing my finances and I'm finding it quite challenging to keep up with the current monthly payments.
โ
I want to stay on top of this and ensure I pay back what I owe. Is there a possibility we could work together to adjust these payments to a more manageable level? Also, I was wondering if there's any flexibility to reduce my interest rate. This would really help me to consistently meet my payment obligations and ensure that I'm able to fully repay my debt. What options do we have to make this situation work for both of us?"
โ
โAlways show the benefit to them and how they will be paid back if they do this for you. Just a reduction in the interest rate alone will save you thousands.
โ
Step 3: Repeat This Process With Each Card
โ
If negotiation makes you nervous, start with the lowest balance card first. You will see that this is just a conversation with the credit card company. Many times they are willing to work with you.
โ
Step 4: Donโt Fall Prey to Debt Cycles
โ
People who fall into credit card debt are much more likely to do it again. Deep down you know your tendencies. If you think there is a possibility of going back into debt, take a break from using credit cards.
โ
Trust me, the points are worth financial ruin.
โ
Most on to a debit or cash-based system until you feel you have your money in a good place.
โ
Once you pay off credit card debt, you should not use a credit card again until you have a 6-month emergency fund in place. This protects you against life.
โ
We all need protection against life.
โ
โ