How to Make a Deal With a Credit Card Company for Reducing Early Payoff Amount Owed

No matter how low interest rates on savings accounts and certificates of deposit sink, credit card rates never seem to follow suit. Credit card interest rates have remained stubbornly high through both good economies and bad, and that is not likely to change anytime soon. That means it is up to each individual consumer to negotiate a better deal with the credit card issuer.

Instructions

1

Gather up all of your bills and add up what you owe. Until you know exactly where you stand it will be hard to negotiate effectively with your creditors.

2

Create a spreadsheet listing all of the credit card bills you owe, placing each account on a separate line. The spreadsheet should include the total outstanding balance, the monthly minimum and the interest rate.

3

Sort the spreadsheet so that the cards with the highest interest rates are listed first. You will get more bang for your buck by paying off or renegotiating these high interest debts. Write down the contact information for each of these credit cards.

4




Working with your credit card issuer can save you money

Sort the spreadsheet again, this time listing the cards with the highest outstanding balances at the top. Write down the contact information for these accounts.

5

Contact each of the credit card issuers on your list, starting with the cards with the highest interest rates and then the ones with the highest balances. Ask to speak to a supervisor or manager immediately when you call. The front line customer service representatives do not have the authority to change the amount you owe or lower your interest rate, but the management team does.

6

Speak politely to the individuals on the phone. Getting angry or combative is the fastest way to get your case dismissed. Explain your situation calmly and rationally, detailing the reasons why you cannot pay the entire amount due.

7

Make it clear that bankruptcy is a very real option if you are unable to renegotiate what you owe. Credit card issuers are often willing to work with customers who are considering bankruptcy, since they know they are likely to get nothing in the event of a bankruptcy filing.

8

Document each call carefully, listing the names of the people you spoke to and any payment agreements. Follow up in writing to establish a paper trail. Ask the credit card issuer to send you a formal statement indicating their willingness to work with you, including details of offers to lower the amount you owe.