Credit card debt can easily become overwhelming, especially when you start adding up all the fees that credit card companies charge. While the best way to deal with credit card debt is to stop using the cards so no new debt is created, that still leaves you with the debt already accrued. To deal with it, sometimes it pays to get a reduction on payments or find a way to pay less on your charges.
Step 1
Call the credit card company and ask for a reduction in your interest rate. If you've been a good customer for at least a year, it's possible the company will agree. You can also try researching other credit card companies or even other offers from the same company and ask your company to match the lower interest rate and fees.
Step 2
Talk to your bank about hardship programs. This will reduce your monthly payment and interest rate temporarily when you're going through a financially difficult time. While this will not reduce your overall debt, it will give you a chance to breathe when things get tough. Hardship programs are under the management of customer care, so you will have to talk to a representative for your card and ask about the terms your bank offers.
Step 3
Consider debt negotiation. Debt negotiation or settlement allows you to work alongside creditors to lower your total debt. Not all companies will agree to it, and others have fixed standards of what they are willing to agree to. For example, some companies will agree to a reduction if you make a lump payment or settle the debt at once. When calling to renegotiate a debt, have a number in mind, so you can bargain.
Step 4
Consider switching your debt to a new credit card. If you qualify for a card that offers six months of interest-free credit, consider moving your debts to this card. That will allow you to pay less (or nothing) for a brief time. This is especially useful if your financial troubles are just temporary and you'll be able to continue making payments afterwards. You can also transfer a debt to a zero percent card and make monthly payments. Since no interest rate accumulates, however, you will be paying less than you would in other cards.
Tips and Warnings
- If you don't feel confident about negotiating a debt yourself, consider a debt-settlement company. For a fee, these companies will get you a settlement with your creditors, so you can pay less and in amounts you can actually afford.
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