When to Negotiate Credit Card Debt

When you negotiate credit card debt, you reduce the amount you owe and the monthly payments you have to make.

The best time to negotiate credit debt is when you are significantly behind in your payments. When negotiations are successful your wallet gets a big break. You can do it yourself, but if you have more than have more than $10,000 total credit card debt to negotiate, you should get a professional to help you.

To begin negotiations, you (or a professional that you get to help you) will contact your creditors in writing to discuss the balances on your bills. You will either make them a lump sum offer or a monthly repayment offer that you can afford to pay. In return, they will send a letter of acceptance or rejection. If your offer was rejected, you may follow up with a counter offer. This process will repeat back and forth until both of you reach a settlement you can agree on. You will make no payments during the process.

You may be wondering how long this process can take. It can vary depending on how many credit cards you need to negotiate. If you have more than $10,000 in total debt, a professional can quickly negotiate on your behalf. Your creditors will try to get as much money as they can, and you are trying to pay as little as you can. It can be a painstaking process but do not offer anything more than you can handle and do not let up until you are happy with the agreement.

If you are a “do it yourself” kind of person, you may feel like you can handle this process alone. As long as you are diligent and complete everything in writing, you may have success. However, keep in mind that professional negotiation companies are trained to negotiate credit card debt. Once they get permission to handle your accounts, they get to work getting you a better deal. Negotiation can be an intimidating process to complete on your own. It can also be very time consuming. The experience that a debt negotiator has surpasses the skills of negotiating that you may be learning along the way.

Financial relief comes with getting your credit card debt under control, and the feeling is priceless. Once the negotiations are complete the harassing phone calls and letters will stop. Suddenly, you will see how it feels to be able to make your payments on time again. Making timely payments will help your credit report. So whether you choose to negotiate credit card yourself or reduce your stress and let a professional handle it for you, get it done. The benefits are worth it.

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