When you have personal credit card debt problems, they can be overwhelming. However, the sooner you begin negotiating with your creditors and telling them you want to make good on your debts, the sooner they won't be a problem any longer. At first, you may feel nervous, particularly if you are not used to negotiating. But negotiating will become easier with practice.
Call Your Creditors
If your debts are particularly overwhelming, this seemingly obvious step may be difficult. However, you need to work up the courage to make phone calls to every one of your credit card companies to begin the negotiation process. It is something you cannot do via e-mail, online or postal mail. Make sure you are well informed as to your late fees, current principal amount owed, current interest rate and any other accumulated fees each credit card may have assessed on your accounts. You don't need to have this information memorized, but keep it close at hand and know where each number is located on each document, for quick reference. That way, you can sound informed while speaking with your creditors.
Be Polite, But Firm
No matter what happens, do not lose your temper. It is the credit card company service representative's job to help his company make money. Even if a customer service representative begins to make you uncomfortable, avoid the temptation to start yelling. While it may make you momentarily feel better, ultimately it will do nothing to help your case and could even harm it.
Ask directly for an interest rate reduction, and be willing to explain the situation that caused you to fall behind in your payments (such as a job loss or sudden medical bills). If the customer service representative cannot or will not help you, ask politely to speak to the supervisor. Continue escalating your call through customer service by being politely insistent that your situation be dealt with. Remember that even a small reduction in interest, such as an annual percentage rate of 11 percent instead of 14 percent, will make a huge difference. Don't forget to say thank you whenever someone helps you.
Invoke Your Loyalty
If you have been a card holder for a particularly long time, make sure to mention it. Tell the customer service representative why you have stayed loyal to that credit card company for so long. Do not lie, but embellish on your positive personal experiences with that creditor as much as you can. Make sure you sound as sincere as possible, but never like you are acting. Tell the customer service representative that you would hate to discontinue your partnership with her company after such a long and mutually beneficial history. This is a particularly useful bargaining chip if you had a previously spotless record of on-time payments with a creditor but only recently fell behind due to an unforeseen financial hardship for which you can provide evidence.
Mention Other Credit Card Offers
Credit card offers advertising low interest rates and free or low-cost balance transfers abound. If the mere mention of your loyal history with a creditor does not do the trick, mention that you would hate to close your account with the creditor you're speaking with and move your existing balance to another credit card company. Mentioning the idea of switching your loyalties (and money) elsewhere may lead to a lower interest rate.
Principal Reduction
In a worst-case scenario, you may have credit card debt that is delinquent by 90 days or more. If that is the case but your debt has not yet been charged off by your creditor to a collection agency, ask for a reduction of your principal amount owed. The New York Times advises that this practice can benefit both you and your creditor if you were previously a good customer who paid on time but recently fell on hard times. Your creditor wants to get paid, and you want to pay your debts in good faith and not have your credit rating suffer. The worst a creditor can do is say no, but according to the Times, creditors generally are willing to work with their customers on these matters.
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