If you’re facing a cash crunch and find yourself unable to honour your Credit Card payments, don’t lose hope. There is a way out.
All you need to do is negotiate. Yes, you can attempt to negotiate your Credit Card debt with your card issuer. Intrigued? Read on to find out more.
- When can you negotiate?
Your negotiation will depend on timing. In case you find yourself in a financial soup, you can talk to your card issuer and probably get better terms for the payment of your dues.
Negotiate when you are not in financial trouble
You can negotiate with your Credit Card issuer even when you’re in a comfortable position financially and not necessarily only when things are looking gloomy. Do you find the interest charges on your card too high? You can always call your Credit Card issuer and request a lower interest rate.
If they aren’t ready to give you a lower rate tell them that you’re shifting to a Credit Card that offers a lower rate. There’s a chance your card issuer may be open to negotiation.
Additional reading: Credit Card Handbook: All Questions Answered
Negotiate when you are in financial trouble
If you find yourself in a financial soup, give your Credit Card issuer a shout if you think your Credit Card payments may be delayed. Would you like a revision in your payment terms? A mid-month due date works better for you? Work it out with your issuer.
However, be careful about the information you share with your Credit Card issuer. This is because some issuers may be overly cautious of bad debt and may block the credit facility on your Credit Card.
Additional Reading: Tips To Deal With Credit Card Debt
- What are your options for Credit Card debt settlement?
You have various options for the settlement of your Credit Card debt. Let’s list them out, shall we?
- Revise payment due dates for your Credit Card
- Request for a reduction in the interest rates
- Think your financial woes won’t end anytime soon? You can request a temporary suspension of payments on your Credit Card account for a specific period of time.
- Agree to a long-term repayment plan at a reduced interest or no interest charges
- Make a lump sum payment at a reduced total amount and close your Credit Card account
Additional Reading: Shred Those Credit Card Debts To Nothing
- Ink the agreement
Remember to get your agreement with the card issuer inked and set on paper. If you expect to face more financial trouble, renegotiate with your card issuer beforehand. Don’t wait to default on your settlement terms before you renegotiate. The card issuer may not take that lightly.
Additional Reading: How To Improve Your Credit Score Using Your Credit Card
Now that we’ve told you how to negotiate Credit Card debt, promise yourself that you may never have to use this advice. Remember to always use credit responsibly.