Many people have lost their jobs and the problem with the credit crunch has made it harder for people to get more credit. If you have this problem financially, you may have to ask for some help with your debt. By using negotiation, you may be able to help yourself to get out of this debt problem.

There are lots of ways to negotiate a lower rate for your credit card debt. If your debt has be already been moved to one of the third party collection companies because of lack of payments, it will be easier to negotiate with them. The reason it is easier for you is they have less money to lose, because they probably bought your debt for pennies on the dollar. You will have to call them to explain your problem and once they realize your are willing to pay them something , they will be a bit nicer to you. You may be able to reduce a balance of $3,000 to $1,500 with a lump sum payment. I know $1,500 can be a lot money, but negotiating debt down takes lump sum payments.

The most important thing for you to remember, is to be talking to the person whom is authorized to do this. Make sure of this before starting your negotiation. The first person who answers the phone will not be authorized to make the deal with you. You will have to ask for the manager or the account supervisor. Keep insisting on this no matter what they tell you. If you should strike a deal, ask for the offer in writing and tell them once you receive the offer, you will send them the payment by register mail.

If the above route is too much for you, I have something else. These credit card companies and collection companies will negotiate the fees they charge. Even debt consolidation services will make phone calls to ask for the late fees to be waived. Look at this this way, even if they say no, so what? These companies will waive fees if you just ask them to. Interest rates are lowered if you just ask, sometimes it is just a point or two. That reduced in interest allows you to pay more money to the principle balance instead. You can even ask for you minimum payments to be smaller. Just remember that once you renegotiate something, you have to keep up with whatever deal you made or chances are, it will revert back to a much higher rate and payment.

So lets recap what we have just read. Third party collection companies my be easier to negotiate with, because they bought your debt for pennies on the dollar. When you are trying to strike a deal make sure you are speaking with someone who is authorized to do so. Even if you can not negotiate your debt down, the fees would probably be easier to renegotiate than the balance owed. Once you make a deal, do not break it or everything may revert back to higher rates and fees.