Negotiating with creditors

[Pandora]

We went through credit counseling and when we were done had no problems buying a new car. I don't think it messes with your credit after your finished paying it off.

When?

Prep is right. There was a time that it did NOT look good to creditors to seek counseling, but I think a couple of years ago there was a move to change that for the rational I already mentioned.

 

[Wenchy]

Has anyone been successful at negotiating with creditors for a smaller interest rate or smaller balance? If so, how did you do it, what did you say that got them to help you with it?

The best way to negotiate (if you have not fallen behind) is to let them know that you have received a better offer from another bank. At the same time, you need to let them know that you are ready and able to close your current account with them. That has worked for me every single time. Currently my one credit card that I carry a balance on is a fixed 1.9% interest rate.

A girlfriend of mine buried herself in debt. It was a double whammy, because she was also my employee. She swears by CCCS, and was able to consolidate and pay off debt...however, she did pay for that service...nothing is free.

A year later, I received a beautiful card with the money + interest that I had "given" her. I never expected to be paid back.

Since you're in trouble already, it looks like you will need to pay for somebody (ie:CCCS) to negotiate with your debtors, and set up a payment plan that will work for you.

 

[Mousebaby]

When?

Prep is right. There was a time that it did NOT look good to creditors to seek counseling, but I think a couple of years ago there was a move to change that for the rational I already mentioned.

I just bought my new car in January. We paid off the credit counseling just before that.

 

[StarCat]

The best way to negotiate (if you have not fallen behind) is to let them know that you have received a better offer from another bank. At the same time, you need to let them know that you are ready and able to close your current account with them. That has worked for me every single time. Currently my one credit card that I carry a balance on is a fixed 1.9% interest rate.

A girlfriend of mine buried herself in debt. It was a double whammy, because she was also my employee. She swears by CCCS, and was able to consolidate and pay off debt...however, she did pay for that service...nothing is free.

A year later, I received a beautiful card with the money + interest that I had "given" her. I never expected to be paid back.

Since you're in trouble already, it looks like you will need to pay for somebody (ie:CCCS) to negotiate with your debtors, and set up a payment plan that will work for you.

One of my cards has an interest rate of 29.99% I have ALWAYS been current with my payments, but I will never get cards like that paid off. The minimum for that card right now is $49 and only $35 goes to the balance. I dont mind paying someone if it will get it paid off faster, I need to try and get it paid off in the next year or so. We need to start looking for a house before my son goes to school. I could also probably handle a personal loan, to pay it all off and only owe one payment a month but I dont know who would give us as much as we need.

 

[PrepH4U]

I just bought my new car in January. We paid off the credit counseling just before that.

Wow that's good news, I am glad they changed that. Did they give you an interest rate below 5% then?

 

[StarCat]

Wow that's good news, I am glad they changed that. Did they give you an interest rate below 5% then?

I dont even think my interest rate is below 5% now. I know my car is at 7% but I'm not sure about the truck. Its not abnormally high. Our credit is good in the fact that we pay our stuff on time, always, but its bad in the fact that most of our cards are pretty much maxed out.

 

[Vince]

Has anyone been successful at negotiating with creditors for a smaller interest rate or smaller balance? If so, how did you do it, what did you say that got them to help you with it?

Never had creditors that I needed to negotiate with. :shrug:

 

[PrepH4U]

One of my cards has an interest rate of 29.99% I have ALWAYS been current with my payments, but I will never get cards like that paid off. The minimum for that card right now is $49 and only $35 goes to the balance. I dont mind paying someone if it will get it paid off faster, I need to try and get it paid off in the next year or so. We need to start looking for a house before my son goes to school. I could also probably handle a personal loan, to pay it all off and only owe one payment a month but I dont know who would give us as much as we need.

OMG! 30%? Must be from Lowes or something they are crooks with their cards. I would suggest paying the min on your lowest interest card and doubling or tripling your highest interest card payment. That way you can eat away at the principal balance quicker. Get that one paid off and then do the same with the next in line and so on.

 

[Mousebaby]

New car

Wow that's good news, I am glad they changed that. Did they give you an interest rate below 5% then?

Well no, not exactly. The interest rate they gave us was rediculous. BUT we turned around a month later and went to our credit union to refinance the car and got a loan for 5.4% . So there is a way to get around those rediculous interest rates if you do some homework. The lower interest rate saved us 75.00 on the payment for the car and that was a big help!

 

[StarCat]

OMG! 30%? Must be from Lowes or something they are crooks with their cards. I would suggest paying the min on your lowest interest card and doubling or tripling your highest interest card payment. That way you can eat away at the principal balance quicker. Get that one paid off and then do the same with the next in line and so on.

Its a Toys R Us Chase card I think if I could get all my interest rates lowered, I wouldnt need to worry about a smaller balance or a credit counseling service. My debt isnt horribly high, but once you factor in all the FC's and over time, its outrageous.

 

[LexiGirl75]

me

I don't like shaved pussy.

Or any kind for that matter.

 

[Mousebaby]

I don't like shaved pussy.

Or any kind for that matter.

 

[StarCat]

I don't like shaved pussy.

Or any kind for that matter.

Dont knock it til you try it jk I'll change it back. I gotta find my other one.

 

[Wenchy]

Its a Toys R Us Chase card I think if I could get all my interest rates lowered, I wouldnt need to worry about a smaller balance or a credit counseling service. My debt isnt horribly high, but once you factor in all the FC's and over time, its outrageous.

Again, if you are not in "arrears" with any credit card company's, just call and ask if they will lower the interest rate, and tell them that you have a better offer, but want to stay with your existing creditors. When they ask what it will take to have you stay with them, that's when you have to start pulling the shots. I would ask, what is the best you can do for me? When I heard the answer, I would nicely tell them that was not good enough. Again, I knew that I could take money out of my stock account to pay them off. They didn't know that, but that's what I told them, and I was begged to stay.

The same is true with cable companies...

Trust me, they want to keep your business.

Be polite, be informed, and see where that can get you.

It's all a financial game with the credit cards. Make them work for you, but never charge more than you can pay off each month.

My 17 year old has her first "pre-approved" platinum Mastercard application sitting here. I have taught her about it, and she will apply, be approved, charge and pay that baby off.

I have paid for a home addition and several cars with credit cards, and with a much lower rate than I could get with a home equity loan, even with the tax benefit of such.

This is the "smart" way to work the "system".

 

[LexiGirl75]

I was glad to hear that the Federal Reserve is not pushing to raise interest rates in a time when gas prices could go thru the roof, because it would have really hurt an awful lot of people right now.

Did you hear that crap today?

2 days to repair a problem was going to cost Alaska $13M and now it's going to be shut down for 2-3 months. What the heck is that going to cost?

Why is this always falling on us when this stuff hits the fan?

 

[LexiGirl75]

Thanks Star!

Dont knock it til you try it jk I'll change it back. I gotta find my other one.

I think we all will better tonight.

 

[LexiGirl75]

I think Wenchy should call your creditors and pretend to be you SC. And then she can call and pretend to be me.

 

[Wenchy]

Did you hear that crap today?

2 days to repair a problem was going to cost Alaska $13M and now it's going to be shut down for 2-3 months. What the heck is that going to cost?

Why is this always falling on us when this stuff hits the fan?

I read about it. Time to really start budgeting, marry a rich guy/gal or find a career where you don't have to commute and enjoy living in a cardboard box.

Of course, living with mom and dad is a bonus, if you have that option.

 

[ememdee19]

Pay your bills on time.

I've always told them I would cancel the account and it's worked every time. Even got 0% interest for the life of the card.

 

[StarCat]

I think Wenchy should call your creditors and pretend to be you SC. And then she can call and pretend to be me.

Thats an excellent idea! We can pay her $100 to do it.