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how to negotiate with credit co.

Posted on: 18th Aug, 2009 02:39 pm
I opened a credit card about 4 years ago and have been loyal with paying the min. balance every month. over the past yr. my husband who is the main bread winner of the family has suffered 2 salary cuts and we are struggling to make ends meet. we have almost 11,000 of debt on this one card with a min monthly payment of 250. how do i negotiate with the credit co. to either lower my monthly payment or settle on a lower balance which i would prefer. Also I am the main card holder would this effect his credit rating?
Hi Guest,

You can contact your credit card company and inform them about your hardship to pay off the amount. Try to negotiate with them for lower payments and a payment plan to pay off the debt. Alternatively, you can also contact debt settlement companies and check out the debt settlement programs offered by them. Under the debt settlement program, your debts would be reduced by 40%-60% depending upon your financial situation. If you've already defaulted on your credit card payments, then it would definitely affect your credit score.
Posted on: 18th Aug, 2009 08:10 pm
I was laid off and had that problem. I wrote a hardship letter describing my issues to my bank. The creditor reduced my monthly payment to half of what it typically was ($150 to $65 or so). That only lasted for 3 months.

I did have a negative impact on my credit, I haven't checked lately but while was on the program I tried to get some medical credit and was denied. Prior to this ordeal I had great credit and never had a problem. I also went through a debt resolution program and had great success with that.

hope it works out for you and your family.

Cheers,
Posted on: 19th Aug, 2009 02:33 pm
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