How to Negotiate Payment on Credit Cards
- 1). Evaluate your credit card debt. Determine the balances, interest rates, and minimum payments for each account and determine which minimum payments you can afford to make and which you need to negotiate. The more you can pay on time and as-scheduled without notifying the credit card company, the better.
- 2). Make a budget and find ways to make more money. You ultimately want to pay off your debt as quickly as possible, not increase your debt by delaying or reducing payments because you'll end up spending more money on interest. Find ways to decrease expenses and put that money toward your credit cards. Or find part-time work or sell belongings to raise extra money that you can put toward credit card debt.
- 3). Contact your credit card companies. If you have exhausted your efforts to pay off your debt and you still find that you can't afford the payments, then it's time to see if your credit card companies will work with you. Normally, your minimum credit card payment each month is 1 to 2 percent of your total outstanding balance. If you can't manage that, then let the customer service agent know of your situation and explain your efforts to make the payments. Then ask if they can reduce your minimum payments, delay your payment due dates, or negotiate a settlement to help you pay off your debt over a set period time without being considered late.
- 4). Escalate your request, if necessary. If the customer service representative won't work with you, ask to speak to a supervisor. Many times a supervisor has more authorization to work with you. Keep in mind that credit card companies want to get their money back, so they are likely to work with you. If you do manage to make arrangements with your credit card companies, stick to your agreements. Let them know if anything changes that makes it impossible to make your payments on time; otherwise, they could consider your accounts delinquent and your credit score will suffer.
