Credit Counseling Services

Credit Card Negotiation

A large number of consumers across the country have run into problems with their credit cards in recent years.

Many of the credit card problems Americans face these days typically arose during the national recession, and have not abated just because that economic downturn ended. Now that the economy is recovering, many consumers may now be getting their feet back under them financially, but are hampered somewhat by their lingering credit card debts.

There are two ways struggling consumers can address their credit problems:

1. Try credit card negotiation directly with their creditors
2. Seek credit card counseling and try to qualify for a debt management program

When negotiating with creditors, consumers should ask to setup a workout arrangement, where the bank eliminates or lowers interest rates, and stop assessing fees to the accounts. The terms of a workout arrangement can be temporary or until the balance is paid in full. During this time, many creditors will cut credit limits so additional charges can’t be made, which can have a negative impact on their credit scores.

Not all creditors are willing to work with consumers. If the credit card negotiation stalls, a professional credit counselor can help consumers get a better handle on their outstanding credit card debt with a debt management program. Through this process, the professional will speak with lenders and try to work out a plan that will allow them to make one simple payment into their debt total directly to the management company, which then distributes it to the creditors. This is effective because it lowers the amount of stress or trouble they may have in getting their various payments sent out every month. The simplified process may also make things more affordable and easier to work into a monthly budget.

If the consumer is unable to qualify for a debt management program because their financial situation, credit card counseling agency can recommend alternative debt options. Some of these options may have a negative impact on their credit scores, but it’s better than allowing the credit cards to go into default and be charged-off. Once these accounts go into collections, consumers’ options become more limited.

Consolidated Credit Can Help with Credit Card Negotiation

Don’t ignore your credit problems. If you need additional advice on credit card negotiation or would like to see if you qualify for a debt management program, contact Consolidated Credit Counseling Services by calling 1-888-881-3619. A professional credit counselor will review your budget, discuss your debt options, and find a solution that works with your finances.