How to Fix Your Credit Card Debt

According to Hamm, one very effective technique to get out of credit card debt is to call your credit card company and negotiate for a lower interest.

Most people are burdened by the worsening debt because of credit card use. Credit card can be acquired easily at first and can also easily trap you to spend more without proper thought. Impulsive buying and poor choices can lead you to so much debt before seeing your first bill.

Eventually you will find it difficult to pay your card debt and you might even be shocked at the first sight of the minimum payment required. This is the start of you financial struggle.

I can relate to this struggle because I have been into it before. I kept adding debt until I reached a point that seemed to be impossible to fix and it was so painful.

One of the steps that I took was to call up the credit card companies and told them my real situation and then start negotiating.

Let me share with you how I did it. But first let me warn you not to use this tactic if you depend on your credit card in bringing food to your table because it might just backfire on you. The credit card company might close your card. However, if you are in a situation where you do not depend so much on your credit card, then this technique might be of help to fix your credit card debt. Through negotiation you can convince the credit card company to lower the interest charged to your account which can help you to save a lot of money in the long term.

For example, if you have a credit card debt of $10,000 payable in 8 years at 19.9percent interest rate, the total amount of interest you will be paying for that period is approximately $10,055. If that interest rate is reduced to 9.9 percent, the total amount of interest for the period is $4,516 thus a saving of $5,500.

How to do the negotiation? The first step is to call the company and explain your situation and your appeal to stretch your payment and to reduce the interest. If the person you are talking to will not accept your proposal talk to the person higher or the supervisor. The secret is not to get angry. The response maybe “no” but eventually you will be passed to somebody who can decide on your case. But remember to engage in this tactic only if you do not rely on your card because the bank might cancel your card or reduce your limit but you still owe them money. If you can handle your situation without your card then go for this tactic and it can help you save a lot of money.

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