Today's article is a guest post by Andrew Wang...
With consumers facing tough times in the wake of the financial crisis of 2008, it's a good opportunity to discuss the possibility of getting your credit card debt sorted. Most people assume credit card companies care only about the profits they make. Interestingly, this is not the case. More and more people are taking the opportunity to negotiate with their card issuers, in order to reduce monthly repayments, or the interest rate applicable to outstanding balances. Let's take a look at a few ways in which you can cut costs by talking with your bank.
First - own up to your debt.
Stop ignoring it, and start acknowledging that you got in a bit over your head. If you can't bring yourself to uncover your financial situation, you have very little hope of successfully convincing others (the financial institutions) to help you. Ring your credit card company, ask them to explain and quantify the outstanding balance on your card, and record this for later use. Open all the envelopes you stashed away because you were too frightened to view your "ending balances". Get these documents sorted and in order, and then congratulate yourself for completing the first step.
Second - do a mini budget for yourself.
Work out the total amount you have owing on all your credit cards, the aggregate minimum monthly payments that you are obliged to make, and the total amount of cash you have coming in each month. This will put you one step ahead of the credit card companies, and will give you a slight edge over the following negotiations. When you have calculated these key amounts - it's time to get the phone ready.
Third - dial the number of each credit card issuer.
When you get an answer - don't be afraid to ask for either a male or female representative, depending on which you feel more comfortable with. Admit it - we all have a preference, so don't hold back. Now comes the most important part of the process - honesty. Take the time to explain exactly what your financial situation is, how much you have owning on this and other credit cards, and how much you think you can afford to pay each month. You will probably be surprised at how well the company reacts. Customer service representatives are not only trained in fixing account problems, but also in finding solutions to payment issues and plans.
With any luck, you and the company will have agreed on a beneficial solution by the end of the call. If not, wait a few days and give it another try! Different representatives will of course recommend different things. The reason they are so helpful? At the end of the day, if you go bankrupt - they will receive none of the money you have outstanding. Therefore, it is in the card issuers best interests to go out of their way - whether it be by cutting interest rates or slashing the required monthly payment, in order to keep you afloat.
As a final note - it is important not to abuse this kind spirit shown by the banks. If you go on to break the arrangement by failing to pay or settle your account as agreed, you may find that the company develops little sympathy for you in the future. Whatever you do, take an honest and open approach to your financial matter, and with any luck, you will be back on track in no time.
____
About the Author
Andrew Wang lives in Seattle area. He manages the the blog: Travel Reward Credit Card.
Photo Credits: 1
Originally posted 2009-01-22 05:26:50. Republished by Blog Post Promoter
Related Posts -
Saving Money with Your Credit Cards pt 2 Continued from part 1... Another type of credit card that you can use to save money is one that offers frequent flyer miles or air fare rewards. Airfare is expensive, and if you fly relatively frequently then you are probably well aware of how expensive it can be to fly....... -
Ruin Your Credit Fast, pt1 Granted, there are a wide variety of different ways that you can ruin your credit over time, but do you want to know what the quickest and most dangerous ways are? Here are five ways that you can quickly and effectively destroy your credit. 1 - Break your budget. Sure...... -
The Dangers of Financial Illiteracy Financial illiteracy is a growing problem throughout the world, and as the recent housing crisis has brought to light, it can have dangerous consequences. There are a few basic financial tips that everyone can use to increase their financial literacy the easy way, and many of these tips can help...... -
What is a Secured Credit Card? If you have poor credit, or less than perfect credit, you may be excited by offers in the mail for credit cards that appear to be designed specifically for you. They promise no credit checks, excellent interest rates, no annual fees, and if you have bad credit, it's ok! But...... -
The Truth about Credit Cards and Debt pt 2 This is part two to a series on credit cards and where our country is heading when it comes to credit card debt. In the previous post in this series we talked about some of the statistics in the credit industry and how to interpret them to get an idea......
Related Websites -
A Fully Solar Toyota Hybrid This will not just be a Prius with a solar panel in order to power the AC, according to the Nikkei. Toyota's goal is to design a completely solar-powered car, with a twist. In addition to solar panel on the car, there is also a set of solar panels for...... -
Financial Crisis: First foreclosure, now credit cards? The next big crisis? The past year has been a tough one for our economy. We have seen the companies suffer as the mortgage industry undergoes a huge crisis. Thousands of foreclosures have happened to people who got into mortgages they couldn't afford. Adjustable rate mortgage and interest only loan...... -
New Legislation Will Bring Changes To The Credit Card Industry If you've been reading this blog for any period of time, you probably know that I'm not a huge fan of credit cards. As a Dave Ramsey fan and facilitator for his Financial Peace University class, you'd probably understand why. In general I think that using debt and credit are...... - Never Pay Credit Cards Before Mortgage The last couple years have proven to be tough times to be a homeowner. Home values around the country have seen a decline, and many homeowners are now feeling the squeeze from signing up for adjustable rate mortgages. Many homeowners are having a hard time coming up with mortgage payments,......
-
Fight Back Against Credit Card Companies Cancelling Your Credit Card and Hurting your Credit Score A couple months ago I received a notice from a credit card which was previously eradicated from my modified debt snowball. I had dual thoughts, "hahhaha, it doesn't matter if you jack up my interest rate, I paid all my credit cards off already, tough guy" and "You better not......
Categories:
Debt, Goal, Guest Blogger, Money, Personal Finance, credit cards
Tags:
0 comments ↓
There are no comments yet...Kick things off by filling out the form below.
Leave a Comment