5 Tips to Negotiate Your Credit Card Debt

[@DowJanesFinancialEducation]

Credit card debt holds you back in so many ways. Not only does it create emotional stress and anxiety, but it stops you from growing your money passively. I hope that this video makes it easier for you to clear up your credit card debt so you can build a better financial future.

[@labelle9921]

This is good for people at the beginning, thank you for this guidance. Some of us need advice on negotiating credit card debt if we have already missed several payments.

[@DowJanesFinancialEducation]

Thanks for your feedback! For negotiating credit card debt after missed payments, it's crucial to communicate proactively with your creditors. Consider proposing a repayment plan or seeking advice from a financial counselor to explore your options further.

[@joewiehr1931]

Is a 20% cash offer too little?

[@christirogers8451]

I called three card companies, all three said changing the terms (i.e. percentage rate or payment amount) changes the terms of the account, and the only way to change the terms of the account is to close the account. Still owing, but possibly a lower amount. I know closing accounts affects credit score, but not sure if the creditor also posts a note to the account that it was closed due to hardship.

[@xxstarlee8879]

Flat out “no” received the other month when I called to negotiate a lower interest rate a few months ago 🙋🏾‍♀️ I am still hopeful for attempts in the future, and am actually taking your course right now to manage my finances better :)

[@DowJanesFinancialEducation]

Love how you called to negotiate! Keep this momentum going. Send us an email at [e-mail] and we can show you more resources in the course that can support with credit card debt as well!

[@tamaraleider1516]

What about transferring your credit card debt to another bank offering 0% interest for a year or so? Is there a downfall to doing that?

[@bludiva27]

I did this. Only downside is transfer fee. Usually 3-5% of total transfer. Which can be a lot if you have a large debt.

[@bludiva27]

What about debt consolidation program?

[@DowJanesFinancialEducation]

Transferring credit card debt to a 0% interest offer can save on interest, but be aware of these downsides: 1. Balance Transfer Fees: Typically 3-5% of the amount transferred. 2. Limited Time Period: The 0% rate is usually for 12-18 months; after that, high interest applies. 3. Impact on Credit Score: Opening new accounts and closing old ones can affect your credit score. 4. Minimum Payments: If you only make minimum payments, you might not clear the debt before the rate increases. 5. New Debt Risk: You might end up with more debt if you continue using the old card. 6. Approval Uncertainty: Not everyone gets approved, and credit limits might be insufficient. If this is an option you plan to pursue make sure to have a clear plan to pay off the balance within the promotional period and understand all terms and fees.

[@evieinnyc]

One of my credit card issuers has sent me communication about an available hardship program but are there any downsides to enrolling in one of those? What about enrolling in one with two or more different credit issuers? I want to pay off debt faster with very limited income, while also improving my credit score in the process. Thanks!

[@DowJanesFinancialEducation]

Thanks for your question! Enrolling in a hardship program can offer temporary relief with lowered fees and interest rates. It's a good option for managing debt during financial challenges, though it's important to consider potential impacts on credit and future borrowing.