Are you looking for ways of getting out of debt fast? Negotiating your credit card rate is a viable option, especially if you do not want the headache of dealing with debt collectors. The thought of negotiating your credit card rate seems intimidating at first, but there is a reason credit companies have this offer. Many have walked this path, so be assured they will listen and could even grant you your request. All you need is to put on your negotiation cap and make the call.
When a credit card company agrees to offer you a lower credit rate, they will present you with options. These are plans that offer you attractive rates and put you on payment of the debt. It then falls on you to choose something that is financially manageable. Every agreement has its terms for settlement, so ensure you are well informed on all before making your decision.
What Agreement Options Do You Have?
Any borrower hoping to lower their interest rate should know their options. Below are three settlement agreement plans for clients who want to reduce their credit card debt.
1. Hardship Agreement
Do you remember during COVID-19 when people lost their jobs and went through economic turmoil? Credit card companies countrywide announced hardship programs for those affected who were unable to keep up with payments. How a hardship agreement works is you reach out to your issuer to present your problem, and they will determine whether you qualify. The credit card company will devise a tailored hardship program for your situation.
2. Lump Sum Agreement
With this plan, you can do away with your debt in one single payment. If you have lump money that does not entirely cover your debt, you can get in touch with the credit card company and settle on a lower amount than what you owe. Remember, the creditor does not have to agree to your request; however, they can offer a subsidized principal on your debt at the same rate and fees.
3. Workout Agreement
With a workout agreement, the credit company will offer you easier payment terms for a period, allowing you to pay down your credit balance. This is if you comply with the agreement terms, and once the agreement expires, you revert to the previous APR (penalty). Most account defaulters choose this because the creditor will cancel the charges incurred due to missed payments or even a reduction in interest rate while they pay the debt.
Conclusion
Most credit card companies forward their delinquent debts to a third party when a borrower fails to make payment over some time. Dealing with debt collectors is not the easiest thing, and if you have the chance, they should get in touch with your credit card issuer and negotiate your interest rate. Above is a highlight of settlement plans you can consider to reduce your debt.