Have Your Credit Card Bills Gotten Out of Hand? Ways You May Be Able to Negotiate
Credit Card
Credit card debt is a common problem that affects millions of people. While having a credit card can be a great way to finance important purchases, you also risk the chance of overspending.
High-interest rates and additional fees can cause even a minor debt to spiral out of control and beyond your budget. If you’re currently drowning in credit card bills, there are options to help.
One way to potentially improve your situation is to look into negotiating with your lenders. Here’s how to do it.
Check Your Free Credit Reports for False or Inaccurate Charges
You may be shocked to find that you’re paying on debts you shouldn’t owe.
Every American is entitled to a free annual credit report from the three major credit reporting agencies: TransUnion, Experian, and Equifax.
Through 2026, you can now request up to six free credit reports per year.
When you get yours, carefully go over each statement. Check the dates, amounts, and lenders to make sure there are no inaccurate or fraudulent charges.
If you realize that something shouldn’t be there, gather as much evidence to the contrary as you can and reach out to the lenders.
In many cases, people can drastically lower their debt by correcting inaccurate reports.
Consider a Lump-Sum Settlement
There are various types of credit debt settlement to help people get out of debt faster.
One option is a lump-sum settlement. Instead of making monthly payments that continually accrue interest, you can agree to pay off a fixed amount at one time to absolve the rest of your debt.
This option may not work for everyone, especially if your finances are already too constricted by outstanding obligations.
However, it may be useful for someone who can afford a smaller amount and want to eliminate the debt as quickly as possible.
One thing to keep in mind is that there are some disadvantages to this option.
For one, your credit report might show that you settled the account for less than what was owed.
This can poorly impact your score or result in declines for future applications. In some cases, the forgiven debt must also be filed with the IRS as additional income, which could increase your tax liability.
Work With a Credit Lawyer
Unsecured cards can rack up insurmountable debt quickly, and sometimes, you need an attorney’s help.
An unsecured credit debt lawyer can help you determine if debt settlement is right for you as well as negotiate with lenders on your behalf.
Working with an unsecured credit debt lawyer can also help you explore your options.
Your lawyer may even be able to walk you through the process of filing for bankruptcy.
Aim for Lower Payments and Interest
Call your credit card lender and discuss your current financial ability to pay. If you went through hardship, such as losing your job, then you might qualify for debt forgiveness.
If not, there are still some ways to make your debt more manageable. One option is agreeing to make a payment that day and in turn, have lower payments per month.
You could also discuss the possibility of reduced interest and offer to make payment sooner.
Keep notes during the conversation, and don’t be afraid to negotiate on your terms.
Living with credit card debt can feel overwhelming and even depressing, but it doesn’t have to last forever. With the right resources, patience and persistence, you can find a way out to the other side.
Addressing other spending habits, like impulse buying or online shopping, can help curtail any further debt that will only bring you down.
Write a goal of your plan to get debt-free, and put it somewhere you can always see it.
This will help you stay motivated as you work toward lowering your payments.
Category: Credit Card
