When credit card debts become too high, one starts feeling a loss of control over his financial life.
What most debtors need to understand is that it is possible to negotiate an easier loan term with the credit card companies.
1.
If the debtor has been making all his payments on time it is possible for him to negotiate a lower rate of interest with the card companies.
Averagely a customer can get about 2 percent reductions in the interest rates.
Even if your payment history has not been flawless you can always ask, it would cost you only a phone call.
2.
It is possible to negotiate with the creditors to remove all penalty charges from your account and any other addition fees being charged.
Fees charged for late payments, for accessing the ATM etc can be waived off.
Negotiations on these charges might not be entertained by some credit card companies while others are more lenient.
3.
Ask for a debt settlement.
If the debtor has been paying his bills regularly then he might have difficulty getting a settlement.
If the customers miss out their payments for 4 to 6 months the credit card companies are willing to give a settlement amount.
A customer will have to offer some down payment in exchange of the settlement.
The usual practice is to start the negotiation by offering 25% of the debt amount.
A good negotiation will close by debtor getting a reduction of 40% or 60% of the total debt amount.
If the debtor does not have enough cash to negotiate the deal it is possible for him to open an account to save some money for the negotiation.
Some of the creditors even agree for a monthly instalment payment from the debtor.