How do you negotiate with credit card companies?

[Miss Informed]

My husband lost his job in August and we fell behind on credit card payments because we had to prioitize bills. Now we are able to pay our credit cards (still dealing with original creditors) but the minimum fees are outrageous now. I am really scared to call and talk to them. Does anyone have experience with this?

I am also tired of all the phone calls from these people is there anyway that I can stop the calls.................

[willingtocope]

First, sit down and work out a budget. Figure how much you need for food, clothing, transportation, housing, etc...whatever is left, allocate to your CCs according to their balances. Once you have a number in mind, call them and ask for the hardship department. Explain that your DH lost his job, but you're now able to start paying again. Tell them what you can afford...and see what they say. Don't agree to anything until you've talked to them all. They will check your credit reports and if they see one CC is getting paid in full, they may demand more.

If they all agree, go for it. If one or more don't accept, then you need to look at BK 13. (That's basically the same thing as what I've just described, except that you'll have the BK court to make your creditors play nice).

[Miss Informed]

Thanks that's interesting, I didn't know that CC's had hardship dept.

[willingtocope]

They do...but, you may have to be persistent in order to get through...and, sometimes they won't work with you until you're already seriously delinquent...and, their rules are fairly strict...and, they'll only carry you for 6-12 months at a reduced rate.

That's way I said make sure you understand what they offer, and that you can actually fit that in your budget.