Friday, July 5, 2013

8 Negotiation Tips To Help Reduce Your Credit Card Debt

By Martin P S Collins


Call at the right time: Choosing the right time to call a credit card company is one of the simplest, yet most effective negotiation tactics. Call them early in the morning, as this is the time when people are in the best mood and more likely to be supportive to your case. Don't call at the end of the day, when everybody is tired and grumpy.

Let them know you will pay what you owe: Credit card companies are extremely wary of people who try to get out of paying their debts using all sorts of dirty negotiation tricks. Make it clear that you intend to pay what you owe, but need a little help on their part. You may just be surprised at how understanding these companies can be! This is a very simple, yet effective negotiation technique.

Take advantage of your first time: If this is the first time to request a lower interest rate or have a late fee waived, be sure the credit card company knows this. These companies show a lot more leniency for first-time offenses as opposed to monthly requests for an extension.

Show them your loyalty: If you have been a customer or a big spender for several years, you should use this to your advantage. When you remind your credit card company what a loyal customer you have been, they will be more willing to renegotiate your debt because they want to keep your business long term.

Ask for reduced interest rates: Not many people know this, but credit card interest rates are usually negotiable for those with good negotiation skills. If you have a reasonably acceptable payment history, you should have no issues with requesting a reduced interest rate. Bring across the point that you'll be able to use more of your money paying off your balance rather than your interest rate charges.

Have late payment fees waived: This is such a simple, yet very effective bargaining tactic. Late payment fees can usually easily be waived if you settle your bill within a short period of the due date. Haggling down fees tends to be much easier than haggling price. If you have, leverage a solid credit history on top. An extra phone call, that is likely to be well worth the effort.

Request to miss a payment: If you have had some unexpected financial issues that you are expecting to resolve in the coming weeks or months, explain your situation honestly to the credit card company and ask very carefully if you could miss a payment or two. Beware though that these kind of skipped payments may have a bad impact on your credit rating.

Speak to the right person: A good negotiation tip is to always try to speak to the person in charge. Your initial concerns will likely be handed to a customer service representative, but request that you speak directly to the manager or another individual who has the authority to make decisions. Remember to write down the names, designations, and contact details of everyone you speak with, as well as the time, day, and particulars of your conversation.




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