Do You Have Credit Card Debt Settlement That You Can't Get Out Of?
Does it feel that no matter how diligently you pay your credit card bills each month, your debt never seems to go down?
The key reason for this is the interest rate at which you are borrowing. Interest rates on credit cards are quite high.
According to the Federal Reserve, the average claim rate on a credit card is 13.8%, while the average interest rate on a mortgage is 3.80 percent.
If you are only making the minimum payment on your credit card debt settlement, the vast bulk of your charge will be applied to the interest rate alone.
In fact, by March 2019, Americans will have spent $110 billion on interest and fees associated with credit card debt settlement.
In order to get out of credit card debt settlement, interest costs are your number one adversary to contend with.
The good news is that there is a technique to get your interest rate down, and it is easy enough that anyone can accomplish it.
If your monthly payments are only barely covering your interest costs, contact your provider and request a lower interest rate.
The worst they can say is that they cannot help you. However, there is a potential that you may receive a YES and that your interest rates will be reduced.
CreditCards.com conducted a study in 2017 and found that 69 percent of respondents who requested a reduced interest rate were granted one.
On top of that, 84% of those who inquired obtained a higher credit limit as a result of their request.
Another 84 percent of those who were late on their payments had their fees waived. In addition, 70 percent of those who inquired were successful in having their yearly charge waived or lowered.
The fact that so few people do it is one of the reasons why it is so successful.
According to Creditcard.com, just one in every four consumers has ever requested a reduced interest rate from their credit provider.
Many people believe that asking is not an option–that is, they do not believe they have the right to ask–while others believe they do not know how to ask or negotiate.
We will show you four effective methods for requesting a reduced interest rate that are both effective and efficient:
What Factors Make You Eligible For A Reduced Interest Rate?
When you submit your request, the following factors are taken into consideration by your credit card company:
How long have you had your card, and how loyal are you? Do you utilize it on a regular basis? Your corporate loyalty and frequent usage of your credit card provide you a significant advantage over the competition. Credit card firms place a high value on recurring clients since it costs them a lot of money to acquire new consumers. The company is more than prepared to lower your fee if it means keeping a long-term customer happy.
Depending on how much you've spent so far, your credit card company may decide to lower your interest rate since they believe you've spent less than 35 percent of your credit limit. They will also check your credit limit on other cards, as well as how much money you have spent on them in the past. The same 35 percent guideline applies here as well.
Finally, the credit card firm wants to know how many times you've been late on a payment in the last year. If you pay on time your bills every time, you have more bargaining power.
If you believe you are eligible for a lower interest rate, phone the lender. Even if you do not meet the requirements, phoning gets you on their radar anyway.
Customer service representatives frequently inform consumers that they should contact back after a few more months of continuous payments.
However, before making a decision, conduct some preliminary study. Investigate the interest rates that other firms are willing to provide to someone with your credit score.
As you'll see in our script below, you may utilize this knowledge to your advantage when negotiating a better bargain.
Begin with the oldest card in your collection. Loyalty pays off, so start with the card that you've been using the most frequently.
Call the customer support phone number that is printed on the back of your credit card.
Explain to the customer support representative that you'd want to get your interest rate lowered and identify yourself.
If you've been a customer for a long time, now is the moment to express your gratitude.
Also, note that you are usually on time with your payments or that you have a good credit card score.
Here's An Example Of A Script You May Use
Hello there, my name is _________ . (After exchanging greetings.) I'd want to speak with someone about my current interest rate with the bank. For the last ________ years, I've been a faithful consumer of the Company's name. And I'd like to continue to be one, but my APR is too high. For example, I receive offers from–insert name of competitor company–, and they offer a cheaper APR to people with my credit score. I make purchases with this card on a regular basis and pay the bill on time each month. I feel I am eligible for a lower interest rate than I am currently paying. Whom should I contact in order to obtain one?
Either the customer support representative will take care of your request or will send you to a supervisor.
If they agree to cut your interest rate, express your gratitude and ask for the specifics of your new interest rate. Inquire as to whether the increased rate will take effect immediately.
And make it clear that the new rate is your annual percentage rate (APR) going forward, not merely a promotional deal that will expire after a certain period of time.
The Ability To Persevere Is Essential
What happens if they say no? Please call again.
The person who answers the phone is frequently the difference between a yes and a no.
If the first representative you talk with tells you no, call back.
This time around, you might be able to speak with someone who is more receptive.
Upon hearing "no" for the second time, request to speak with a supervisor.
If they also decline, you might inquire as to what you can do to put yourself in a better position to receive a rate decrease.
They could impose certain limitations and/or ask you to call back in a few months, but this is a step in the right direction.
How many times are you allowed to call? There are no restrictions.
However, once every six months–or until you receive a yes–is OK.
If you make an excessive number of phone calls, you may be placed on a blacklist. After you've received your first rate reduction, you might want to wait a year before requesting another.
As a firm that deals directly with clients, Alleviate Financial Solutions has a duty to deliver the finest services available in a professional way. This standard is created from the very first time we talk with a client and continues throughout the relationship. Professionally written letters, financial plans, debt settlement methods, and reports help us to maintain our high levels of service while being accountable to our clients.
🎧 Podcast: https://pod.co/podcastlive/how-to-release-an-irs-wage-garnishment-and-work-with-debt-settlement-companies
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