Interest Rate Negotiations

Negotiating credit card debt begins with a phone call, not to your standard customer service rep, but to their supervisor or manager or the proper account management department that can handle the issue and is authorized to make changes on your account that may come about through negotiation. They may refer you to a different number to call.

During the Call

Explain your situation to the account manager that you get on the phone after you first get their name and, if applicable, operator or identification number. Being able to identify them in the future is critical for making sure that the terms of your negotiation are upheld.

After you explain clearly, calmly and rationally, your situation and the trouble you are having making your bills, you will probably be asked for a recommendation for how you think the situation can be made better for you and to guarantee payment for them. Explain to them that you would like to negotiate a reduction of your interest rate to at least the national average for new credit card accounts or less.

Negotiating your credit card rate may seem like a minimal change that will not make much difference to the difficulties you may be experiencing, and indeed, in the short-term it may make little difference. The lowered interest rate may prompt the credit card company to lower your minimum payment as well, which you should ignore, if possible and continue to pay at least what you were paying before. The difference can mean the difference in paying off your debt a good deal earlier than you would have otherwise done.

After the Call

Before you hang up with the account manager, make sure you get them to agree to fax or mail you the agreement you just reached (if any) before you will pay any money or send them even one dime. Wait for the agreement to arrive in the mail and then diligently fulfill your part of the obligation by payi8ng faithfully and on time in order to avoid the risk of the credit card company reestablishing the higher rate plus any penalties or fees that they can. Another idea to think about is negotiating the fees.