mired in credit card debt? The best way out of it is to pay off your
outstanding amount right away.
that these credit card companies are not open for negotiation. Every day,
company representatives meet with clients who can’t pay off their debt.
of the meeting is to arrive at a win-win solution: the customer is cleared of
his/her debts. The credit card company does not have to worry about unpaid
Here are 3
negotiation tactics that you may want to use:
- Have a Plan
meeting with the credit card company, you should have a plan in place. The
basis of your plan should be your current ability to pay off your debt. You
should review your cash flow:
- Determine your current streams of revenue – What
are your sources of income? Are they consistent or stable?
- Create a summary of your expenses
- Identify future payments that you might make. For
example, if you have children, when will you pay their tuition?
have evaluated your cash position, come up with proposals for the credit
company. Here are a few proposals that you may want to consider:
- Request if it is possible to condone interest
payments. It is unlikely that the credit card company will remove all interest
payments on your outstanding account. It is possible for the credit card
company to condone interest for a limited period.
- Ask for a lower interest rate. It won’t hurt to
ask! Be prepared for the credit card representative to counter with a proposal
that you have to make a significant first payment.
- Offer to settle the entire amount if a
significant reduction is made. For example, you have an outstanding amount of
$5,000. Don’t hesitate to offer a one-time payment of $2,500 as settlement for
the entire amount. The credit card company may go for it. After all, they would
rather have some payment than nothing at all.
- Talk to the
If you want
the negotiation process to go smoothly, always ask to meet with the right
person. The right person is the one who can finalize decisions right away. There
will be serious risks to your cause if you speak with a representative and not
- Delays – The representative will tell you, “Let
me present your proposal to my Supervisor. I will get back to you when I have
word.” If you negotiate with a representative, you will expose yourself to
- Filtered Information – When information goes
through an intermediary, the probability is great that it will not be accurate
once it reaches the intended recipient.
who is charge of credit card matters and ask for an appointment. If it is not
possible, then after your meeting with the representative, put all of the key
discussion points in an email then send it to the decision-maker.
your proposal gets approved, show good faith by fulfilling your obligations.
For example, if the credit card company approves a reduction in interest rate,
make it a point to pay on time.
- Get Help
If you are
not confident about your negotiation skills, get help. Ask a friend who has had
previous experience negotiating credit card bills for assistance. Perhaps
he/she can give you pointers on the approach and how to respond to objections.
Find out from
the credit card company if you can bring your own negotiator during the
Always make an effort to settle your debt obligations. The
longer you stay in debt the closer you get to living in the poor house.