Debt Consolidation

Negotiating Late Credit Card Debt Payments – A Step-By-Step Guide

Late payments can cause a serious dent on your credit score. Therefore, if you are having difficulty in making your accounts current, you must consider negotiating late credit card debt payments. When you pay late, your debts start growing at a much faster pace, as it results in extra charges, such as late penalty charges. Besides that, you also need to pay high interest on payments that are not made in a timely manner. However, sometimes, life is cruel and it does not allow you to pay on time. In such situations, the best thing you can do to pick up your phone and give a call to your creditor. Make them aware of the kind of financial hardship you are going through and request them to reduce hefty penalty fee and waive additional interest charges.

Do Your Calculation To Find Out How Much You Can Afford To Pay

Before you give a call to your creditor and start negotiating late credit card debt payments, you must first do a thorough calculation to determine the amount of money that is affordable for you to pay today. If your financial situation allows you to make at least the minimum monthly payment as required by the creditors, you have a good chance to win the negotiation in your favor. However, even if you cannot pay the minimum amount, you need to know how much money you can offer as payments to your creditor.

Request To Waive Fees

If you have been in good standing before with a decent payment history, most banks will be willing to waive the penalty charges and they will not even charge additional interest on the late payments. You just have to give a call to their customer service department and start negotiating late credit card debt payments. You can find the number on your recent bank statement. While you are talking to the call representative, you must explain your situation thoroughly to them in a convincing way. You can be a better position to negotiate if you have been a customer of the bank for a long time and you also have the proof of financial hardship that you are going through currently.

Be Willing To Make The Payment Today

You can maximize your chances of winning the negotiations in your favor by telling them that you are ready to make the payment today provided they are ready to waive off the charges. Even if they do not waive the entire charges off, they are at least very much likely to reduce the charges to a significantly very low amount.

Talk To A Supervisor

If you are having a tough time negotiating late credit card debt payments with the call representative, you have an option to request them to transfer the call to a supervisor. This strategy can be very effective, as it demonstrate that you are very serious about what you are demanding and that you are also willing to make the payment. When you talk to the supervisor, the chances are that you will be talking to a person who is more humble toward your problems. Talking to supervisors is also beneficial in a sense that they are authorized to make bigger exceptions.

Consider An Automatic Payment System

While you are negotiating late credit card debt payments, you must also try your best to convince the call representative that you are serious about avoiding late payments in future. One way to do this is to set up an automatic payment system, as per which, the minimum amount due per month should be automatically deducted right from your bank account. This strategy will significantly improve your chances to win the negotiations in your favor.

If The Company Increase The Rate, The Increased Rate May Not Apply On The Late Payments

As per the new credit card laws in the United States of America, creditors must give at least a 45-day notice in advance before increasing the interest rates and that the new rates will apply to the new purchases only. The new rate cannot apply on the late payments.

Overall, when it comes to negotiating late credit card debt payments, you will have to work on proper strategies to increase your chances of winning the negotiations.


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