Negotiating with Your Credit Card Company

When debt is getting out of control, don’t reach for the phone to call a bankruptcy lawyer right away. You may want to try negotiating with your credit card company first. In fact, a bankruptcy lawyer can help you to explore this option before you head to court and file for protection. In order to start negotiations, you may want to compile a list of reasons why you haven’t paid your debts.

For example, if your spouse came down with cancer and you have been in the hospital with her all day every day, and have had to devote all of your finances to paying medical bills, this would be an excellent reason to explain your credit card debt. You can also explain that you lost your job, were injured, or have had to spend an exorbitant amount of money on an unexpected cost.

In order to negotiate, you will need to put all embarrassment, shame, or fear aside. You cannot effectively negotiate with your credit card company if you are not prepared to admit that you are overdue on your bills and need a little help. Instead of avoiding bills, you will want to contact the credit card company and talk to them about the options available. Understand that you are not the only one that has an outstanding debt; the company deals with issues like this all the time.

You will want to understand the implications of a debt settlement before you agree to one. Your credit card company may agree to decrease your funds, but most favors do come with a catch. The credit card company may change your payment plan, waive late fees, or reduce penalties, but they may expect something in return and you credit score may be damaged in the process. Still, negotiating with your credit company will do less damage to your credit score than a bankruptcy would. You can talk with a bankruptcy attorney today if you need information about negotiating with your credit card company, or if you want an advocate to help you with the negotiations. This may help you to avoid bankruptcy or foreclosure.