Are you in a position where you will be negotiating a credit card settlement fee with your credit card company? Over the course of this pandemic, many people have been unable to manage their finances as estimated. This has resulted in there being major problems with credit card fee payments. Credit card companies ideally always have the option of negotiating credit card debt so that an arrangement can be worked out. The reason for this is because as time passes, it becomes apparent to them that the chances of them to be getting their money back are getting bleaker too. This is why they are ready to go for a ‘Something is better than nothing’ policy which may just help you drastically reduce your debt.
The good thing about negotiating your credit card debt settlement is that you are technically the one holding the right cards. For the credit card company, it is simply a question of retrieving the most money out of you, as your financial situation may worsen in the future. Before starting off your debt negotiation, you should keep a few healthy tips in mind just to get off to a good start:
- Keep all the relevant documents with you
- Stay confident and plan your strategy in advance
- Stay flexible and know what’s the highest/lowest you can go
- Use your situation to get the best possible outcome
- Have multiple backups to fall back on before negotiating with debt collectors
If you have never been in this situation before, chances are that you will be clueless as to how to go about things. It is always a good idea to research things and consult a lawyer if possible so that you are well prepared. Negotiating with credit card companies can be a bit tricky but if you know what your options are, you will feel a lot better about things. Here are the three best options that could work for you:
- Acknowledging Hardships.
Acknowledging and settling on a hardship agreement requires you to present the company with all the relevant documents. If you can show the company that you have faced adverse scenarios in the past, there is a good chance that you will be exempt from a lot of things like the high-interest rates on your credit card settlement. You might even get a significant deduction on your final bill.
If this goes well, you can work out an easier payment system wherein your monthly burden decreases quite a bit. This is even better for your credit score further down the line.
- Settling on a Total Sum.
If you have a said amount of cash at your disposal, there is a good chance that the credit card negotiation company will settle for it. This can help you greatly as you may get a hefty discount on your total payable lump sum. The reason companies are likely to settle for a lower amount if you pay a full sum cash is because this is ready money that they know they will get. Establishing a new line of payment leaves the door open for further uncertainty/ default.
- Negotiating an Agreement.
Most negotiations end in a mutual agreement where the credit card company restructures your monthly payments and might even lower your interest rate so as to suit you in the future. This can work well for you as you can sit down transparently with the company and arrive at an agreement tailored to your situation which works out well for both of you.
You should also know that while settling credit card debt with the company has its advantages, it does affect your credit score quite drastically. Furthermore, your record will also permanently reflect a ‘settled’ mark which will affect your ability to get cards or loans in the future. This is why it is always best to contact an attorney who has experience in this field.
At Dsouza & Strachan law group, you will find capable lawyers who will help you devise the best strategy for future negotiations. Devising a good strategy can also help you settle your debt in a way that impacts your credit score the least. Give us a call today. (Phone Number)