How to Negotiate a Better Deal With Credit Card Companies
- 1). Gather all of your credit card statements and make a list of everything you owe. List the interest rate on each card, the total outstanding balance and the monthly payment amount.
- 2). Start your negotiations with the card charging the highest interest rate. Getting that rate lowered will give you the biggest return on your investment. Also pull out the card with the highest balance. If you can negotiate a lower payoff amount, you can save yourself a lot of money.
- 3). Contact each credit card issuer and ask to speak to a supervisor. Chances are the front-line customer service representatives will not have the authority to change the terms and conditions of your payment, lower your interest rates or reduce the amount you owe.
- 4). Explain your situation clearly and concisely when the supervisor answers the phone. Do not threaten to declare bankruptcy or become combative on the phone. In most cases, you will get further by keeping a civil tone and explaining your financial situation clearly. Explain the reason for the negotiation, whether it is the loss of a job or a large unexpected expense.
- 5). Detail what you would like the credit card issuer to do, whether it is lower the balance on the card or reduce the interest rate. Tailor your request to each card. For instance, if you have a high balance on one card, reducing that balance can save you the most money. If you have a card with a particularly high APR, lowering that interest rate will give you the greatest return.
- 6). Request a formal document outlining the terms of your payoff agreement. Read that document carefully when it arrives, and contact the credit card issuer if you have any questions. In many cases the credit card issuer can cancel the agreement if you miss a payment or pay late, so be sure to make your payments on time. Submit the agreement to the address listed on the form, and begin making your payments as outlined in the document.
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