There are many things on which a person has to struggle in his real life and out of control debt is one of the severe issues that causes his financial ruin. When someone has to go through such tough phase, it always seems like this is the worst thing to happen and they are buried so far that they will never see any light at the end of the tunnel. This is not always true. You need to be relaxed and realize that there are many possible ways to conquer this hard situation. The first important that needs to be taken is some kind of negotiation with your credit card companies. You can convince your creditors to accept an amount that is affordable to you and can pay off the debts in easy repayment plans. The credit card companies want their money back so if you show them every intention to pay back, most of them will be willing to work on your terms.
Generally, there is more room to negotiate when the creditors have passed the accounts to some collection agency. This means that if you owe a total of $4000 for some account that is now sent to a collection agency, you should be able to negotiate with them to pay approximately $2000 and get the rest of the balance written off. This helps the company because they are finally receiving something from the debtor to show in their books of accounts. Credit card debt negotiation plans are often a win-win situation for both the parties involved. The worst that can happen is your credit report will show this account as paid less than the full amount, but this is a lot better than leaving the account delinquent and add with late fees or having to file for bankruptcy because of some court summons filed against you by the original creditor.
If you go through your credit card statement, there should be a column that will show the outstanding balance along with the accrued interest rate. If the interest rate is more than 10%, you have a better chance of negotiating with the collection agency or if the account is with the original creditor. You should be fine if you are able to pay towards the principal amount.
Call each of your credit card companies and explain the reasons of your hardship. Be mentally prepared that not all the companies will be willing to work at the first stage. But if you keep in constant touch with them, your chances of getting better deals is possible. If this trick works on one of your creditors, you will definitely expect the same kind of trick to work on the other creditors also. This may not always happen but you should consider the amount of debt that was eliminated by that particular creditor who lowered the balance.
If you are feeling too shy to contact your creditors or have a fear inside, you may need the assistance of a professional who can negotiate with your creditors on your behalf. There are reputed agencies that are dedicated in helping people come out of debts. These services may be offered to you for a fee, but the benefits are handsome considering the amount of money that you will save from the total balance. These companies are used of working with different creditors in the industry and they know some tricks which the common people don’t know. It never helps to speak to some professional and discuss about possible options. The counseling is free and you are not bound to sign up for their services. Once you have spoken to them, weigh your options and then make the best move.
This entry was posted on Monday, March 17th, 2008 at 6:48 pm and is filed under Credit Card, Debt. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
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