Let me start by saying that I am not a financial adviser. If you are in serious financial problems, it would not hurt for you to go through some credit counseling. Make sure you use a reputable company and I certainly recommend a face-to-face meeting.
Negotiating with a bank or credit card company is probably the hardest type of negotiating. Why? Because it is no longer “your” money that we are talking about but “their” money. Proverbs 22:7 states:
The rich rules over the poor,
And the borrower is servant to the lender.
What does this mean? You are working to pay your debt. In other words, you are a slave to the credit card company.
Lower Credit Card Rates
So, how can you get out of this relationship? Pay off your credit cards as quickly as possible using the Debt Snowball. To speed up that process even more, you can contact your credit card company and ask for a lower interest rate. Many times, it is as simple as that. Other times, they will not negotiate with you unless you are late on a payment. Regardless, be persistent and keep asking.
Love to Know recommends letting the credit card companies know you have other options, like rolling your balance to another card. They want to keep you and the debt you owe for as long as possible because they are continuing to make money off your debt.
Lower Bank Fees
One more area that you can negotiate is on bank fees, specifically overdraft charges.
Unfortunately, we have been there too many times. We never PLANNED to over draw our bank account. It was always a surprise and it can really hurt when you are already struggling to make ends meet. So, pick up the phone and call your bank or go in a speak with a financial officer. They can cut your fees significantly.
One tip to remember, make sure that all charges have posted to your account before trying to get a deduction on your fees. If you are significantly overdrawn and you remain overdrawn despite the alterations to the bank fees, you may still bounce more transactions. By waiting until everything has cleared, the bank can offer you a better percentage off the insufficient funds charges.
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