Did you know that the average American household owes $10,000 in combined monthly credit card debt? And did you know that most of these households make the bare minimum payments that are due to the credit card companies? The open secret is that the credit card companies love these minimum payments, since they can turn an average credit card with $2,000 charged on it, into a 30-year loan.
All through that time, the bank or credit card company takes in huge interest payments and service charges, month after month. Consider this example. Joe has a credit card with a local home improvement outlet. He pays the minimum amount due every month. Joe’s wife has been holding a MasterCard for many years and she pays it off completely every month. The interesting thing is, over the last few years, his credit limit has doubled while hers has stayed the same.
Credit card companies will encourage the people who only pay minimum amounts to spend more by increasing their credit limit. This tactic often causes people to become completely overwhelmed making credit card debt programs necessary. If you find yourself in this situation, contact your creditors yourself and attempt a credit card debt negotiation settlement. There is nothing others can do for you that you can’t do yourself, so save your money and the hassle of hiring a debt relief service provider to do credit card debt negotiation settlement for you. You can do it yourself, and here’s how.
There are two main issues to think about during a credit card debt assistance which are the balance you owe and the interest rate you are paying. The time to start the credit card debt negotiation settlement negotiations is when you are at the point where you can no longer make your minimum payments. Thereís no reason for you not to give it a try.
You have more power in the negotiation than you think. Credit card companies want you to pay them back and they want to avoid the time and resources it takes to collect. If you have a lot of credit card debt, you may want to stop using the credit cards all together after youíve negotiated a repayment plan. credit card debt negotiation settlement does not mean that you donít have to pay back the debt. You could find yourself in serious hot water if you donít follow the settlement terms.
The interest rate you pay is decided by your bank or credit card company, so your initial request should be a reduction in the interest rate itself. The bank or credit card company might be reluctant to do that, but remember that anything you pay on top of the principle sum owed is already profit, so be gently persistent with them. You never know until you ask, so speak up. You may be surprised by what the credit card companies will help you with.
We often recommend hiring a debt settlement professional to people who come seeking our advice. For those with little time or energy to devote to cleaning up their debt this can be a great idea. An even better idea (and quick way out of debt) is to do it yourself. If you’re interested in that you must check out Zipdebt. With this one guide I’ve seen amazing results with my clients!