While debt negotiation with your creditors is something you can do on your own, there are specific ways each creditor is more open to negotiation than others. Our experienced debt negotiators have dealt with dozens of creditors over the years, so we know the best way to approach them.
Credit Card Debt Negotiation
Credit card debt can rapidly increase once balances exceed their limits. Credit card companies will instantly hike interest rates, along with tack on over-the-limit fees, when you max out your cards and exceed the limit. When your cards are at the max, all it can take is one late fee to send you over the limit and begin the downward spiral into deeper debt.
If your unsecured debt has gotten totally out of hand, debt settlement may be the only option aside from bankruptcy to free yourself from the constant barrage of debt collection calls and letters. Debt settlement can drastically reduce balances and wipe debts clean over the course of a payment plan with a single lower payment.
Can you negotiate with a debt collection agency?
Debt collection agencies buy debts from original creditors for pennies on the dollar. Because collection agencies purchased your debt for far less than the original past-due balance with your creditor, you have more room to talk them down to a number you can afford in trade for settling the debt sooner.
Can you negotiate with credit card companies to reduce debt?
Credit card companies will sometimes allow you to negotiate your balances down when you’ve been hit with a lot of fees and interest penalties. If you can make the case that you’ll be able to pay on time in the future, if you can just get a little help now, you might be able to convince them to drop some of the charges before your credit card debt snowballs out of control.
Negotiation of credit card debt
Thankfully, unlike tax debt negotiation, credit card debt and other unsecured debts don’t have the underlying threat of tax liens and bank levies. This means you can more easily establish a strong negotiating position than with IRS debt negotiation.
At the end of the day, unsecured debt creditors have less leverage than the IRS or federal student loan lenders, so you definitely have the means to negotiate better terms for yourself.
Alleviate Financial offers debt negotiation services that make it simple to get your debts reduced. We start by talking to you about your financial situation. Then, we make a case to your creditors on your behalf to get your debts slashed to levels you can handle.