Debt Consolidation ? Can You Negotiate with Your Credit Card Company?

The average American household has nearly $10,000 in credit card debt, and many people are only able to make the minimum payment of 2% of the balance. Even 2% is $200, and by paying the minimum payment, you could be paying on the balance for decades before you finally pay it off. Since new legislation will make it more difficult to file for bankruptcy, it may occur to savvy debtors to try to negotiate a better deal with their credit card company in order to make it easier to pay off the balance. Is this possible?

It might be possible, depending on your credit history, interest rate, and current balance. Your best bet, especially if you have a history of paying on time, is to simply call your credit card company and ask if they will lower your interest rate. They might, especially if you tell them that you got a better offer from another bank. If you have a history of paying late, however, they probably will not be willing to lower your interest rate. That's unfortunate, since paying late has probably prompted the credit card company to raise your interest rate in the first place. Still, it's worth a phone call; you may get lucky.

If you've been paying your bills on time, asking for a lower interest rate may be the only option available to you. The credit card companies aren't going to be too sympathetic to your financial woes if they're receiving payment on time. On the other hand, if you're late on your payments, especially if you're more than three months behind, you may have some negotiating leverage. That leverage comes with a few strings attached, however. You may be able to negotiate a lump-sum settlement for your outstanding balance, where the credit card company accepts a portion of your debt and writes off the rest. They're often willing to do this instead of turning your debt over to a collection agency, as it's cheaper just to settle. The settlement amount will vary, depending on your interest rate, your balance and your payment history. This type of settlement comes with a couple of problems of its own, though. What if you don't have the money to settle all at once? If you can't pay your bills on time, you probably don't have the cash to settle at once. Additionally, the amount of your debt that gets written off will show up on your credit report as bad debt, and that will stay there for seven years.

Your credit card company may or may not be willing to work out a payment plan, but it costs you nothing to ask them, and negotiating a settlement with them may be cheaper for you than if you consult with a debt consolidation firm. If your credit card debt is substantial and you just can't make the payments, it's worth a try.

©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and StructuredSettlementHelp.com, a site devoted to information regarding structured settlements.

---

Google News Updated : Fri, 05 Sep 2008 08:05:30 GMT McCain takes stage, turns down heat - Boston Globe The Gazette (Montreal) McCain takes stage, turns down heat Boston Globe - 1 hour ago By Joanna Weiss For a man at the top of a presidential ticket, John McCain had an unusual task last night: to remind the nation that he was the star of his own show. Palin Assails Critics and Electrifies Party New York Times GOP welcomes McCain with enthusiasm Milwaukee Journal Sentinel CBS News - Kansas City Star - ABC News - TIME all 1,387 news articles Publ.Date : Fri, 05 Sep 2008 06:20:31 GMT Wal-Mart acting on shifts in consumer spending - BusinessWeek Los Angeles Times Wal-Mart acting on shifts in consumer spending BusinessWeek - 3 hours ago By CHUCK BARTELS If the mood on Wall Street is grim, then consumers must be feeling even more bleak, right? Fuel prices remain high, inflation has hit food prices hard and consumer confidence is down. August another disappointing month for retailers Los Angeles Times Lower-cost stores gain from US shoppers' thriftiness Financial Times Forbes - The Associated Press - Wall Street Journal all 673 news articles Publ.Date : Fri, 05 Sep 2008 04:48:39 GMT Data on defective genes make tailored remedies possible - Baltimore Sun Voice of America Data on defective genes make tailored remedies possible Baltimore Sun - 41 minutes ago By Frank D. Roylance Researchers cataloging the genetic codes of deadly human brain and pancreatic cancers say they have found several dozen defective genes that appear to work in concert to set off the tumor growth that eventually kills their victims. In Long-Awaited Maps of Cancer, The Breakthrough Is the Problem Wall Street Journal What You Need to Know About Mapping the Cancer Genome U.S. News & World Report Reuters - The Associated Press - Bloomberg - Science Daily (press release) all 209 news articles Publ.Date : Fri, 05 Sep 2008 07:24:12 GMT Rice set for historic Libya visit - BBC News RTE.ie Rice set for historic Libya visit BBC News - 3 hours ago US Secretary of State Condoleezza Rice is set to begin a historic visit to Libya as part of a North African tour. She is expected to meet Libyan leader Muammar Gaddafi as part of the trip, which will also include visits to Tunisia, Algeria and Morocco. Rice set to begin historic Libya visit AFP Rice set to make history in Libya The Associated Press Aljazeera.net - International Herald Tribune - WZTV - Bloomberg all 425 news articles Publ.Date : Fri, 05 Sep 2008 04:41:55 GMT '1967 lines not up for discussion' - Jerusalem Post Sydney Morning Herald '1967 lines not up for discussion' Jerusalem Post - 32 minutes ago By JPOST.COM STAFF The July 4, 1967 lines are not up for discussion and are the very foundations from which direct talks between Israel and Syria will start, Syrian Foreign Minister Walid Muallem said Friday. Video: Sarkozy in Syria : the press is divided france24english Syrian sets terms of role on peace Philadelphia Inquirer New York Times - Boston Globe - International Herald Tribune - Voice of America all 1,039 news articles Publ.Date : Fri, 05 Sep 2008 07:32:39 GMT Boeing Workers Are on the Brink - BusinessWeek Wall Street Journal Boeing Workers Are on the Brink BusinessWeek - 1 hour ago Despite being offered a relatively generous package by management, Boeing machinists are ready to go on strike. Here's why by Joseph Weber When a stunning 87% of Boeing machinists voted on Sept. Motown Blues for Boeing? Wall Street Journal Boeing, machinists union meet with mediator The Associated Press Seattle Times - Bloomberg - Reuters - Chicago Tribune all 1,406 news articles Publ.Date : Fri, 05 Sep 2008 06:54:59 GMT Schwarzenegger: Palin delivered 'fantastic' speech - San Jose Mercury News KGET 17 Schwarzenegger: Palin delivered 'fantastic' speech San Jose Mercury News - 1 hour ago AP SACRAMENTO—Gov. Arnold Schwarzenegger on Thursday said Sarah Palin hit a home run with her acceptance speech for the Republican vice presidential nomination. Video: Governor To Californians: Bug Lawmakers About Budget kcratv California nears record in spending plan stalemate Sacramento Bee San Gabriel Valley Tribune - Los Angeles Times - New York Times - City Watch all 302 news articles Publ.Date : Fri, 05 Sep 2008 06:14:17 GMT Add RSS Feeds To My Web Pages Increase Traffic

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

Getting the Most Out of Consolidation Loans UK

Before letting too much debt or too many payments get... Read More

Considering Debt Settlement? What You Should Know

Your credit card bills are stacking up and for whatever... Read More

Debt Consolidation ? Discipline is Required if Consolidating with Home Equity

Debt consolidation is a popular topic these days. The average... Read More

Student Loan Consolidation

Student loan consolidation is one of the most used methods... Read More

Debt Elimination 4

Planning For Debt Elimination Without Surplus CashPreviously we looked at... Read More

Debt Consolidation when You Find Yourself Overwhelmed with Bills, Bills, and More Bills

Many of us find ourselves overwhelmed with bills, bills, bills.... Read More

What Your Mama Never Told You About Debt Consolidation Services

When someone is extremely deep in debt, and he or... Read More

Reducing Credit Card Debt

One of the easiest "things" that can happen in life... Read More

Negotiate Your Way Out Of Debt

Eliminating your debt is a daunting task. What can you... Read More

Consolidating Your Government Student Loans

A Consolidation Loan allows you to combine your federal student... Read More

Credit Card Blues

For the average American family, debt, and especially credit card... Read More

Debt Management - Debt Management Fees

Debt management fees can vary vastly from one company to... Read More

Debt Consolidation with Free Government Grants? One Scam to Avoid

Have you ever seen a commercial or an ad promising... Read More

Debt Consolidation Loan

Debt Consolidation of Different LoansDebt consolidation refers to the restructuring... Read More

Debt Consolidation Loans: Thousands Now Out Of Debt, Who Never Thought They Would Be!

A Debt consolidation loan: Is a personal loan you use... Read More

Are You Buried In Debt?

Are you having a problem paying your bills? Are you... Read More

Before Considering Debt Consolidation

If you believe in the good in people then you... Read More

Bad Credit Debt Consolidation Loans - Getting a Debt Consolidation Loan, Even With Poor Credit

An online debt consolidation loan allows even people with a... Read More

Debt Consolidation Made Simple

If you have considered debt consolidation then you are probably... Read More

Exploring Your Options for a Consolidation Loan UK

Whether you're wanting to consolidate your debt to avoid bankruptcy,... Read More

4 Debt Reduction Tips

If you are overwhelmed by debt, there are options you... Read More

Dangerous Debt Consolidation Loans

On the surface, debt consolidation loans offer cash-strapped consumers some... Read More

Debt Elimination: Legal! Lawful! Ethical! Debt Elimination Really Works

You are trying hard to eliminate your loans but keep... Read More

Finding a Low Interest Debt Consolidation Loan

If you are in the market for a low interest... Read More

What is a Debt Consolidation Loan?

If your objective is to reduce interest rates and lower... Read More