Can I Really Negotiate For A Credit Card Reduction?

By Author: J.J. Yong
Total Articles: 963
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As most of us know, credit cards are hard to keep as they cause us to spend more than we can afford and buy things impulsively. More often than not, we tend to swipe the plastic card more times than we realize, causing the bill to total up and producing an amount that is more than what we can afford. So if you find yourself facing debts that scare you, the question that would linger in your mind would be; can I negotiate a credit card reduction?

Well, to put an end to your wondering, the answer is yes.

Keep in mind that all credit card companies would want to try to get back as much as possible from the amount they loaned out as they aren't in favor of losing money. But after sometime, when they see that you simply cannot pay back the outstanding amounts which would be when you stop paying or when you threaten to go into bankruptcy protection. Once this happens, the credit card collectors would see that they are in a position to not receive any money back. Hence, they would be willing to negotiate a credit card reduction to recoup some of the money given out so as to not be at total loss.

Basically, you ...
... would be paying less than you have spent benefiting yourself and clearing your debts as well. This would only work if you've got an income that is too low or zero assets to seize. In general, if a reduction is granted, it will be at 75 to 80 cents on the dollar. A $5000 loan could become $4000 under a typical scheme. There are cases, however, when people have been able to cut their debts in half. It depends on the creditor's perception of your ability and willingness to pay.

In conclusion, such a reduction may help you financially but it would also black list you from further credit card benefits. So spend carefully and swipe wisely.
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