The world of credit cards is very murky, and you will need to be on your guard if you really want to navigate this world in the proper way. It’s one thing to think that you know everything when it comes to credit, but there is always something new to learn if you’re really serious about making a big run in the world of credit cards. For example, if you already have a few credit cards, you might wonder if you have the ability to negotiate your credit card debt down. In order to find out the answer to this question, there are a few things that you need to know first.
For starters, you have to understand that the credit card industry is all about money: both protecting assets and making more money. You will need to remember that the credit card companies love making money, but they also hate losing money. If you already have credit card debt that is greatly outstanding, you might be able to negotiate down your balance.
Yet you have to think about the way credit works. If you try to negotiate at the wrong time, the credit card companies will not take you seriously at all. This is because it’s all about getting as much money as possible. For example, if you are only 30 days past due, then you won’t have much negotiation room than if you are more like 90 days past due. This is when the credit card company has to decide upon whether or not it’s likely that they will get any money form you. Turning it over to a college agency is usually the next step, but if they can avoid that step they certainly will. Generally speaking, it’s a much smoother process to get money from you before a charge off occurs. Now, if you have no intention to pay the debt then it doesn’t really matter. But if you really want to preserve your credit, you will need to try to time your negotiation process for the point before you get sent off to the collection agency.
To get started, you will want to make sure that you’re doing part of your negotiation in writing rather than just on the phone. It’s very easy for the credit card company to change their minds in the middle of a phone call, and you wouldn’t have a leg to stand on in court. However, if you get written confirmation from the credit card company that they’ve accepted your offer, then it’s just a matter of making sure that you will be able to actually send in the money.
As a side note, you never want to send in a check, because there are companies out there that will take this as a sign that they can automatically debit any amount of money from your account. You don’t want to clear your credit problem and then start up a new problem with your bank account being overdrawn. It’s better to send in a money order, which is a fixed financial instrument.
One thing that you will also need to think about when you’re trying to make your offer to the credit card company is that you want to always send the letter certified mail, return receipt requested. Anything less than that will make it difficult to actually get your letter received well. If you don’t show that you’re serious about getting things done, the credit card company will simply ignore you. Who really wants to deal with that?
Overall, the truth of the matter is that you really can negotiate down your credit card debt. However, negotiation is an option more for people that are already behind on their credit cards. Unfortunately, if you really are one of the lucky people that are managing their credit fine already, then there’s really nothing you can do except pay your bill and think about negotiation techniques for an interest rate deduction. See, there is a little bit of a silver lining in every cloud!