How to Negotiate With Credit Card Companies to Lower Debt

Negotiating with credit card companies requires you to be calm and patient. Credit card companies have staff trained in negotiating and are armed with a variety of techniques to use to obtain the best results for the credit card company. The bottom line for a credit card company is the company does want as much money as possible from you. By remaining patient and maintaining your position, you can negotiate an agreement that works for both the company and you.

Instructions

1

Review your financial situation and determine the amount of money you have to repay the credit card debt. Is the money in a lump sum or are you trying to negotiate a monthly payment? Figure the amount you'd like to be able to negotiate as well as the maximum amount you can afford to pay.

2

Contact the credit card company by calling the customer service number shown on the back of your credit card. Tell the phone representative that you would like to be transferred to someone with the authority to negotiate an agreement on your credit card. Prepare to be firm, yet polite and patient. The credit card representative is the one authorized to make an agreement -- making him mad will not help you come to an agreement.

3

Begin by letting the representative know you want to pay but you cannot pay the full amount. Briefly explain why -- laid off; new baby; simply no money. Offer to pay the amount you'd like to settle for. Expect the representative to counter with a much higher amount. This is a negotiating process. Stand your ground and let the agent know that agreeing to repay something you don't have the funds for would be pointless and reiterate your offer.

4

Continue the process until you have either reached an acceptable negotiation or you need to end the call. You may need to reach out several times to come up with a successful agreement. Remember the credit card company is trained to obtain as much money from you as possible and until the representative feels he has exhausted his ability to get more money from you, he is not likely to agree. Do not agree to anything more than you know you can pay. Be prepared to end the call if the representative is hostile or threatening. You can try the call again at a later time or date.

5

Get any negotiation agreement in writing before making any payment. This is especially true for a lump sum settlement agreement. Without something in writing, you have nothing to prove the negotiated agreement.

6

Make all payments as agreed. A failure to pay by the agreed upon date or dates can void the agreement and leave you with the original credit card debt due.