Pages

Saturday, 20 July 2013

8 Negotiation Tactics To Help Reduce Your Credit Card Debt

By Martin P S Collins


Call at a good time: One of the simplest yet most effective negotiation tactics is to choose the right time to call a credit card company. Call first thing in the morning, as people are more likely to be pleasant and willing to help you out. If you call at the end of the day, people tend to be tired and cranky.

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.

Request a lower interest rate: Unknown to most, rates on credit cards can often be negotiated by those with good negotiation skills. If you have a good payment history, you should be able to get a lower interest rate. Especially, if you can explain that you'll be able to put more money towards paying off your actual balance rather than your interest rate charges.

Get relief from late payment fees: This is a very easy, yet 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. Haggling down fees tends to be much easier than haggling price. A solid credit history can be used as leverage, and may be well worth the effort to make that extra phone call.

Ask to skip a payment: When you are in a situation of financial problems that you think you will be able sort out in the near future, you can try to explain this to the credit card company. If you request to miss one or two payments as an exception, many companies are willing to give you this relief. The downside is of course a likely negative impact on your credit report.

Speak to the right person: A good negotiation tip is to always try to speak to the person in charge. Your initial concerns will likely be handed to a customer service representative, but request that you speak directly to the manager or another individual who has the authority to make decisions. Remember to write down the names, designations, and contact details of everyone you speak with, as well as the time, day, and particulars of your conversation.




About the Author:



No comments:

Post a Comment