Are you looking to negotiate your cash advance or credit card debt? You don’t have to sign up to pay another company to do it for you. A creditor or lender will most often prefer to deal with the person one-on-one rather than discuss the case through a third party. Save some cash and work through your debt yourself.
A cash advance lender will listen.
Since short-term loan debt is not revolving debt, there is a small window of negotiations available. Before any lender will work with you, you will need to give a legitimate reason for not having paid your loan off. Know this information prior to the due date. In general, people are more receptive to problems before it affects them. You may not find a cash advance lender willing to work with you. All you can do is try. Be honest, be receptive and be willing to work with the lender’s options. When you are in the vulnerable position, it is difficult to have the upper hand.
Credit card negotiations may be easier since the debt is long-term revolving debt. The creditor wants you to keep their card and continue spending. It doesn’t hurt to try utility companies if you are behind on their payments.
- Look through your bills. Take note of all interest rates and the balances owed. If you have been in good standing with the company you may have some leverage, especially if your introductory rate is about to go up or as in a phone bill, your contract is due for renewal. They want your continued business. In this case, timing is of the utmost importance.
- Take a look at any service bill and make sure that whatever is listed on the bill is something you approved and are using. You would be surprised what might have been placed on your bill which you are unaware of. Don’t let a credit card company talk you into a monthly service fee for credit card insurance. It is a waste of money since consumers are already protected by the FTC.
- Look to see what you are paying and do some window shopping. A good strategy when asking a company to work with you is to remind them what their competitors are offering. Look for any and all better deals than what is on your statement as of now. Search out introductory offers as well.
- Make your call once you have all your information assembled. Know what you are going to ask for before you place the call. Be brief as to why you would like a better rate, but be to the point. Remind them what other companies are offering and that you are thinking of moving your business. Ask them if they have any other rate they could offer to keep you there.
- Don’t give up. If they are unwilling to offer you a new rate, ask them what they could do to help you lower your total costs. If the person you are speaking to have limited authority, ask to speak to someone who does. If you feel they are not bending, express your disinterest in staying a customer, you may find yourself listening to one more effort on their part to keep you.
- If it doesn’t work, be prepared to leave.
Negotiations are not always a comfortable discussion. One of the most important things to remember to do is to be polite no matter what. As soon as the there is any tension or hostility over the phone lines, the company will not be willing to negotiate. If a credit card company refuses, look into transferring the debt to a new lower interest line of credit. A cash advance lender may listen to your reasons and try to help. Do your best to talk to whomever before the payments are negatively affected.
