We took a look at negotiating your credit card debt (link opens in new window) in a previous article. But is there a positive spin to it? Can you actually make something good out of negotiating credit card debt?
My strong answer is YES – and here below are a few benefits from negotiating with credit card debt:
- if you’re successful, you saved yourself the risks of running the process through a creditor counseling service and the trouble with that when communication breaks down
- negotiating over money issues is a test of skills and persuasion power – coaching and classes to teach you this are among the most expensive in the field of personal improvement
- believe it or not, if you make a good point and keep your end of the deal, the relationship you are building with the credit card company (through the representative you are talking to directly) will be stronger and based on results and struggling through hardship together; this might not mean immediate benefit to you, but reps are human too – be nice to them and they might remember your name when they have an opportunity that suits your profile
- success breeds success – if you managed to negotiate down with credit card debt, what is to stop you from repeating the process with your car loan or even mortgage?
- many will tell you debt settlement visible in your credit report might deter lenders from extending credit to you because you’ve been given a settlement in the past; true, BUT…. since it is not difficult at all to repair your credit report you can turn even this last con into a pro – just think what bargaining power it gives you to enter a second or third negotiation meeting with a creditor with the proof of you previous settlement out there; it spells out “this is your chance of getting some money off me and avoid future losses” and financial companies know how to take on that chance right away.
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