Debt Negotiation: Does It Still Work?

When it comes to reducing credit card debt, the advice is simple: just call your creditors and ask for a rate reduction. These days, credit card companies are slashing open lines of credit, reducing available credit and issuing new credit only to the A-level applicants. Can debt negotiation work under these circumstances?

In a word, yes. Debt negotiation is becoming trickier, however. Credit card companies aren't competing for borrowers right now; instead, they're looking for sure bets. Some consumers have given up on the sage advice of asking for a rate reduction and are trying to make the best of a bad situation.

That doesn't have to be the case. Working with a debt settlement company may give you the breaks you need. Debt settlement companies can explain your options to you and find solutions that work for your budget and your personal circumstances. Third parties are often more successful at negotiating not only new interest rates, but also balance reductions that eliminate a percentage of your debt altogether.

You may be concerned that debt settlement will have a negative effect on your credit. It might. But its effect won't be any worse than the effect of late or missed payments, a growing balance due and a reduced ability to pay. It certainly won't be worse than bankruptcy, which can follow you around for ten years, and may not eliminate your debts.

Your creditors are still willing to negotiate, but they want reasonable terms and reasonable assurances that the changes they agree to will have a positive impact for them as well as for you. Working through a third party debt settlement firm may be able to help you attack your debt problems on multiple levels by reducing interest rates, reducing balances owed and helping you restructure your monthly spending to fit within a reasonable budget.

Debt settlement firms have gotten a lot of bad press lately, but there are reputable firms that might be able to help you manage your debts and reduce the balances on your accounts. Check out any debt settlement company carefully. Make sure they're professionally accredited and work with an attorney to construct your debt settlement plan.