5 Things You Need to Know About Credit Card Debt Negotiation

A majority of Americans owe money to credit card companies: your average cardholder has a debt of $ 6500, and that’s only going up.  And some of us just aren’t going to be able to pay it all off.  But rather than go into collections, it’s possible to get your card closed and to negotiate a payment plan that both you and your credit card company can be happy with.

But if you want to go that route, you need to be ready.  Here are five things you need to know.

1. It’s Really, Really Hard

Obviously, credit card companies would much rather you pay the full balance than only part of the balance.  So they’re not going to be open to the idea of a payment plan unless they see it as the more profitable option.  Generally, that means you’re three months behind on payments, and they have a choice of taking you to court, or selling your debt to a collector for pennies on the dollar and writing it off as a loss, which gives them a tax write-off.  In short, they may be open to a payment plan, but to them, it’s not their only……………. continues on www.CreditCards.org