Overwhelming credit card debt can be a source of significant stress and frustration. If cutting back on expenses isn't going help you to pay your credit card bills, negotiation may be your best bet. Most credit card companies would rather get something than nothing, so if you are honest, persistent and realistic, there is a good chance that you and the credit card issuer can work something out. Just be sure to ask the card company to mail or fax you the agreement in writing before you send any money.
Be Straightforward
Credit card company collectors hear a lot of sob stories, so it is unlikely that yours is going to persuade them to lower your interest rate, eliminate fees or settle your balance for less than you owe. Before you call, look over your finances and figure out what you can afford to pay. When you call your credit card company, explain that you are overextended and ask for what you need.
Be Persistent
The first credit card collections representative may not be willing to negotiate the deal that you need. Don't give up. Ask to speak to the supervisor or manager. If you still aren't getting anywhere, hang up the phone and call again next week. While it is better to negotiate a settlement quickly to prevent more damage to your credit report, it is also true that credit card companies are more open to negotiation as your account slips further into default.
Be Realistic
Don't agree to a settlement if you don't know for sure that you will be able to uphold your end of the agreement. If the credit card company won't agree to a plan that works for you, look into other options, such as credit counseling or even bankruptcy. If the credit card company settles your account for less than what you owe, you may have to pay taxes on the forgiven debt, so remember to factor tax consequences into your negotiation strategy.
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