How to Work out Credit Card Charges
Contact credit card companies right away when you are in arrears from late or missed payments., Consider making a lump sum payment if you have the funds available., Explain your problem to a customer service agent, and ask to speak to an account...
Step-by-Step Guide
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Step 1: Contact credit card companies right away when you are in arrears from late or missed payments.
The longer you delay, the more likely you are to accumulate late fees and interest rate charges on your account. -
Step 2: Consider making a lump sum payment if you have the funds available.
Credit card companies sometimes are willing to make this arrangement and settle for a lower payment, rather than turning your account over to a collection agency.
Be prepared to pay immediately, and understand that the lack of payments or late payments will still show up on your credit report for a period of 7 years. , Get all information in writing, including the agent's name, before sending a check. , Don't choose a payment amount that you won't be able to make, since this could just lead to more missed payments and financial shortfalls. , Once approved, you can either transfer your balance or use the new card as leverage in dealing with your current credit card company.
Explain that you can transfer the balance if there is no other solution.
Don't apply for credit cards unless you are sure you can qualify; too many applications can adversely affect your credit rating. , A credit counselor can show you how to work out credit card charges and in some cases will deal directly with credit card companies.
Beware of scams and false promises.
A legitimate debt management program is usually a non-profit, and they charge little for providing assistance.
Keep in mind that no one has the power to remove negative reports on your credit report.
Your credit will still take a hit even when the debt is paid. , Those who file for bankruptcy typically are behind on all their debts and often don't own assets like homes or cars.
If you file for bankruptcy, the credit card company will not get paid.
You can use the threat of bankruptcy to try to work out a debt settlement.
Keep in mind that your credit card company will have access to all your asset and payment information, so they will know whether you are having problems making all payments or just theirs. -
Step 3: Explain your problem to a customer service agent
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Step 4: and ask to speak to an account manager if the agent can't help.
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Step 5: Find out if you can negotiate a monthly payment that is within your means and a lower interest rate.
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Step 6: Check out other credit cards that have lower rates and see if you qualify.
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Step 7: Seek the help of credit counseling or debt a management program.
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Step 8: Determine whether you could be viewed as a potential bankruptcy risk.
Detailed Guide
The longer you delay, the more likely you are to accumulate late fees and interest rate charges on your account.
Credit card companies sometimes are willing to make this arrangement and settle for a lower payment, rather than turning your account over to a collection agency.
Be prepared to pay immediately, and understand that the lack of payments or late payments will still show up on your credit report for a period of 7 years. , Get all information in writing, including the agent's name, before sending a check. , Don't choose a payment amount that you won't be able to make, since this could just lead to more missed payments and financial shortfalls. , Once approved, you can either transfer your balance or use the new card as leverage in dealing with your current credit card company.
Explain that you can transfer the balance if there is no other solution.
Don't apply for credit cards unless you are sure you can qualify; too many applications can adversely affect your credit rating. , A credit counselor can show you how to work out credit card charges and in some cases will deal directly with credit card companies.
Beware of scams and false promises.
A legitimate debt management program is usually a non-profit, and they charge little for providing assistance.
Keep in mind that no one has the power to remove negative reports on your credit report.
Your credit will still take a hit even when the debt is paid. , Those who file for bankruptcy typically are behind on all their debts and often don't own assets like homes or cars.
If you file for bankruptcy, the credit card company will not get paid.
You can use the threat of bankruptcy to try to work out a debt settlement.
Keep in mind that your credit card company will have access to all your asset and payment information, so they will know whether you are having problems making all payments or just theirs.
About the Author
Cheryl Mitchell
Committed to making hobbies accessible and understandable for everyone.
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