Can I Negotiate a Credit Card Reduction?
By John Hurley
If you are burdened with thousands of dollars of debt and have no good way of paying it all off, you may be wondering "Can I negotiate a credit card reduction?" The answer is yes, but there are some things to keep in mind.
First of all, the credit card companies want to get as much of the money they loaned back. They are not in the business of giving their money away.
But sometimes they realize that they have made loans that you cannot pay back. In this case, you have either stopped paying or are threatening to go into bankruptcy protection.
If you do either of these things, the credit card company will not see any of their money. So, they are willing to negotiate a credit card reduction in order to recoup some of the money they have lent.
In general, you are most likely to qualify for paying a lesser amount if you don't have assets to seize or you have a low income.
In general, if a reduction is granted, it will be at 75 to 80 cents on the dollar. A $5000 loan could become $4000 under a typical scheme. There are cases, however, when people have been able to cut their debts in half. It depends on the creditor's perception of your ability and willingness to pay.
You should know that any reduction will further blacken your credit. It is always better, from a credit score standpoint, to pay off your bills in full.
So, the answer to "Can I negotiate a credit card reduction?" is yes. You just have to know how to do it.
If you have fallen into the trap of easy credit, and found yourself over your head in debt, there is help! Go to http://www.helpfordebt.org to reach out to organizations that can assist you in reducing your debt - sometimes up to 50%. You will learn to make - and stick to - a budget and they will help to negotiate your credit card and other bills down.
You are not alone. Many other people who were in exactly the same circumstances as you are have found relief through the programs offered through http://www.helpfordebt.org
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