Business & Finance Debt

Negotiating a Better Credit Card Debt Situation

If you are in dire straits and up to your neck in credit card debt there are some sure fire techniques you can implement into your debt management plan to ease your stress and pay off your debtors.
Pick Up the Phone Picking up the telephone and contacting the credit card or collection agencies who keep hounding you is the first step to easing your mind.
When you owe more money than you are able to pay, you can typically settle your account for a lesser amount.
You do not need to hire a debt relief or consolidation company to do the work for you.
All you need to do is make a list of your debts and contact each company directly.
Know How to Negotiate If you pay attention to debt collectors, they will all tell you that their bill is the most important.
Rule number one in debt repayment is to know how to prioritize.
When it comes to choosing which bills to pay, start with your electric and utilities.
Always make sure to pay your rent or you will end up on the street.
If you still have money left over, pay some of your debt.
Next, you must know your rights.
In some cases, you never have to pay a debt back.
For example, if you are receiving letters from debt collectors who have purchased your debt from a credit card company, you are not always required to pay it back.
It is your responsibility to learn what your rights are and what the debt collectors are doing to make you pay them.
In the end, you are part of their profit margin.
Transfers If your credit card debt is not outrageous, you may wish to consider transferring your credit card to a new card with 0% offer on balance transfers.
By transferring, you can immediately save on interest charges and give yourself some time to pay off as much debt as you can.
The key to successful credit card management is to always pay more than the minimum amount on your credit cards.
If you only pay the minimum, it will take you years to pay off even the smallest amount.
Pay as much per month as you can afford, and have it directly debited from your account each month so you are never late.
If you see yourself struggling with credit card debt, ask the company to lower your limit and try to make more than the minimum payment per month.
You should never cancel your credit card as it is damaging to your credit; if you cannot control your spending, cut up the card and throw it out.
Keep in contact with your credit card company and don't avoid their letters or phone calls.
If you're struggling, ask for help.
Most companies are willing to give you the benefit of the doubt.
In the end, if you decide to file for bankruptcy, they lose out on the money you could be paying them.
They want you to pay them back and they will help you if you are open and honest with your situation.

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