Credit Card Debt Negotiation
Credit card debt negotiation is a new concept that
will most probably be on many people's minds now and in the
Yet, it wasn't too long ago that credit card debt
consolidation and bank loans were the well-known and used
reducing or even eliminating credit card debts.
But as banks and other lenders are now tightening their lending
criteria, today more and more people may need to start honing
their credit card debt negotiation skills in light of the current credit crisis.
With the ease at which almost anybody can still get credit card
credit, and, the fact that this form of borrowing can still be
used to purchase almost anything, it is hardly surprising
that so many people across the globe have found themselves in debt
trouble far before the credit crunch ever arrived. So, where does
credit card debt negotiation fit into the equation?
Recent findings show that Barclaycard rejected 50% of
applications for new loans in the last few months. This suggests
that people looking to secure loans to clear credit card debts
may see this avenue of lending closed to them. Meaning, they might
well need to consider entering into credit card debt negotiations
for lower rates of interest on credit cards with their existing
credit card companies.
We all know that having too many credit cards that carry increasing
rather than decreasing credit debt balances can rattle prospective
lenders who might perceive multiple credit card holders with too high
a debt as being 'risky'. This in itself can result in credit
refusal or at the very least, securing additional borrowing at such
a high rate of interest that won't exactly help your credit card debt
reduction or even eliminating creditcard debts stragegy.
This is where negotiating credit card debt with your current
credit card provider comes into play. Basically, credit card
credit debt negotiation is about asking your current credit card
company for help and assistance in clearing off your card debts.
So, the negotiation process really starts right from your credit
accounts where you have the most hard-hitting credit debts.
If you are in need of credit debt help, an initial starting point is to speak directly with your credit card company and inform them of your intention to clear off
your credit card debt. Use your skills to negotiate credit card
debt reduction by getting the APR on your current creditcards
reduced to a lower interest rate.
Successful cedit card debt negotiation will not only save you money
(on account of the reduced interest rate you negotiate), but it
will also save you the trouble associated with having to look
around for a new balance transfer credit card -
which you may or may not get at the rate you want.
Should you get no joy with your existing creditcard company, you
will need to look to other credit card suppliers to help you
consolidate credit cards. Don't for one
moment imagine that your credit card debt negotiating skills
can't work magic here too. Use them as far as possible to
negotiate credit cards with a low standard APR; a 0% credit card;
a longer 0% introductory period or even both.
The above are really most important things to consider when you
negotiate credit card debt settlement, reduction or elimination. However,
you will also want to include in your creditcard debt negotiations
factors such as available credit limit and various other benefits -
you'll be in a stronger negotiating position if your
credit card history is sound.
If your credit rating happens to be poor or bad, you might find it
difficult getting a 0% balance transfer
creditcard or an unsecured bank loan. But hey, use your
credit card debt negotiating skills - you never know until you
The content on this site is purely for information purposes only
and is not intended to replace your seeking professional financial
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