Can you reduce your credit card debt through negotiations?

| Apr 26, 2021 | Credit Card Debt

Most people with overwhelming debt look to manage it without resorting to bankruptcy. Wanting to pay your bills is honorable and shows that you’re not looking to avoid your obligations. Like most debtors, you may only need some help managing your financial situation.

You might already know that you can negotiate medical debt to seek a reduction in the amount that you owe. However, not many Tennessee residents know that it’s possible to negotiate credit card debt as well.

Tips to implement when negotiating credit card debt

Making a good-faith effort to get ahead of your bills is never a bad idea. Those who choose to negotiate credit card debt before turning to bankruptcy (if necessary) often find success using the tips below.

  • Confirm your debt. Confirm how much your outstanding balances and respective interest rates are with your card issuers before attempting negotiations.
  • Choose an option. Most credit card relief options involve making a lump sum payment or signing a hardship or workout agreement.
  • Make the offer. Reach out to your card issuers and make an offer on your remaining debt.
  • Get an agreement. You will want to make sure to put any agreement that you reach with your creditors in writing to protect your interests.

You should keep in mind that not all credit card debt negotiations end successfully. You may need to consider alternative debt relief options should your original plan not work out. 

Understanding your debt relief alternatives

Consider seeing a bankruptcy attorney to explore other options if your credit card company doesn’t seem willing to negotiate your debt. A chapter 13 bankruptcy may provide you with a repayment plan like what might have existed had your negotiation attempts succeeded. It allows you to meet your financial obligations in a way that does not cause additional financial hardships.