agencies and not to in-house bill collectors. To you and I, this allows in-house bill collectors to be far more aggressive. You can expect in-house collection personnel to use every trick in the book to try and squeeze every last dime out of you.
The first rule for credit card debt negotiation is to recognize when an attempt is being made to intimidate you. Just go ahead and to ignore it as it's only a negotiating trick meant to bully. Never forget that you have something they want - money - and if they want your money, they will have to work with you.
More importantly, know that credit card company collection procedures are driven by mathematical analysis and strict business rules. Statistics prove that slightly overdue debt is likely to be paid. Long-term unpaid balances statistically never get paid off. Most agencies won't believe your serious until you're at least 90 days delinquent.
Here's a proven action plan for credit card debt negotiation:
1) Look at your financial obligations objectively. Do not let your emotions rule your financial decisions;
2) All negotiations are business transactions. Guilt, blame, intimidation or ignorance will not produce a workable solution for either party;
3) Start communicating with your credit card company or lender early so you can demonstrate a willingness to work with them and a history of hardship;
3) The best time to start the negotiation in earnest is when your account is at least 90 days delinquent and before it is turned over to a lawyer or outside collection agency; and
4) Have access to a lump sum equal to about half of the outstanding balance.
Most lenders will glady accept the lump sum if you follow the steps listed above. It's unlikely that you can negotiate payment terms on a significantly reduced balance, but it's always a good place to start.
Credit cards are a fact of life. If your credit card debt is beginning to stress you out, take action now and consider negotiation as a solution to your life's financial challenges.
By: James Thurman
Article Directory: http://www.articledashboard.com
Susan Jacks is a financial services expert and a full-time writer for www.winwin-negotiation.com .
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