Tuesday, November 12, 2013

8 Negotiation Tactics To Help 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.

Ask for reduced interest rates: Not many people know this, but credit card interest rates are usually negotiable for those with good negotiation skills. If you have a reasonably acceptable payment history, you should have no issues with requesting a reduced interest rate. Bring across the point that you'll be able to use more of your money paying off your balance rather than your interest rate charges.

Have late fees waived: This is a simple, yet very effective bargaining tactic. Late fees, like other fees, can easily be waived if you pay your bill within a few days of the due date. A solid credit history can be used as leverage, and may be well worth the effort to make that extra phone call.

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.

Get to the decision maker as fast as possible: A good negotiation tip is to always attempt to speak to the person who can call the shots. Your initial call will likely be handed to a customer service representative, but you should ask to talk directly to the manager or whoever has the authority to make decisions. Write down the names, titles, contact details and timing for every call you make.




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