Thursday, November 14, 2013

8 Bargaining Tactics To Reduce Your Credit Card Debt


by Martin P S Collins


Call at the right time: Choosing the right time to call a credit card company is one of the simplest, yet most effective negotiation tactics. Call them early in the morning, as this is the time when people are in the best mood and more likely to be supportive to your case. Don't call at the end of the day, when everybody is tired and grumpy.

Let them know you will pay what you owe: Credit card companies are extremely wary of people who try to get out of paying their debts using all sorts of dirty negotiation tricks. Make it clear that you intend to pay what you owe, but need a little help on their part. You may just be surprised at how understanding these companies can be! This is a very simple, yet effective negotiation technique.

Make use of your first time: In case this is the first time you are asking to have a late fee waived or a lower interest rate, you need to tell the credit card company about it. They will be much more supportive to people who ask for this for the first time, rather than to those who ask every month!

Show them your loyalty: If you have been a customer or a big spender for several years, you should use this to your advantage. When you remind your credit card company what a loyal customer you have been, they will be more willing to renegotiate your debt because they want to keep your business long term.

Request a lower interest rate: Unknown to most, rates on credit cards can often be negotiated by those with good negotiation skills. If you have a good payment history, you should be able to get a lower interest rate. Especially, if you can explain that you'll be able to put more money towards paying off your actual balance rather than your interest rate charges.

Have late payment fees waived: This is such a simple, yet very effective bargaining tactic. Late payment fees can usually easily be waived if you settle your bill within a short period of the due date. Haggling down fees tends to be much easier than haggling price. If you have, leverage a solid credit history on top. An extra phone call, that is likely to be well worth the effort.

Request to miss a payment: If you have had some unexpected financial issues that you are expecting to resolve in the coming weeks or months, explain your situation honestly to the credit card company and ask very carefully if you could miss a payment or two. Beware though that these kind of skipped payments may have a bad impact on your credit rating.

Speak to the decision maker: A good negotiation tip is to talk to the person in charge as soon as you can. When you first call, you will probably be diverted straight to a customer service representative. If this is the case, request to talk directly to the manager or another person who can make decisions. Don't forget to write down all the names, designations, and contact details of everyone you talk to, as well as the time, day, and details of the discussions.




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