How to Negotiate Credit Card Debt

The most important aspect of personal debt restructuring is to ask before you get in too deep and before the lender sells your debt to a collection agency. So it is more important than ever to learn how to renegotiate credit card debt before one is forced into bankruptcy court.

Renegotiating debt is best done before you are too delinquent. Debt can be restructured a number of ways. Here are some ways to help you preserve your ability to control the restructuring of your debt.

To learn how to negotiate credit card debt consider these negotiating tactics:

  1. Do not wait until the debt has been sold. By then it is too late to deal with the bank personnel who might have an interest in helping you. The third party's only motivation is to make money off your bad situation.
  2. Before you seek debt relief, develop a personal budget that is viable and a plan which you can handle. Now you are ready to lift the telephone and negotiate your credit card debt.
  3. Don't be afraid to ask for help. Advising the lender of a looming problem allows them to help you avoid it becoming a major issue and saves them the time and effort of writing it off.
  4. Be persistent when negotiating credit card debt. "No" is easy for creditors to say. You will hear it a lot. Call back and try to get to someone else. Talk to the same person repeatedly until they begin to get to know you and start wanting to help you.
  5. Be pleasant on the phone and in person. You need to develop a rapport with the other person so they want to help you. Getting mad often makes things worse. Besides, you have little to threaten with so avoid creating an atmosphere of a confrontation. You will lose.

You have a cash flow problem that is about to become the lender's problem. You have to have a viable solution to offer the lender that makes more sense to them then selling off your debt. They have to be enticed and motivated to listen to you. Your challenge is to negotiate your credit card debt in a fashion that allows you to stay afloat. Theirs is to mitigate their losses. Your plan has to be better than their alternative.

The most important aspect of credit card debt restructuring is to ask before you get in too deep. A good customer's case always sounds better than a plea from a habitual problem customer.