The Recession is a Good Time to Re-Negotiate Debt

In spite of the fact that many credit card companies have been increasing interest rates and significantly reducing credit lines, the recession is proving to be a great time to re-negotiate your credit terms.

Credit card companies are desperate these days and will go to great ends to keep you as a customer. Keeping in constant and direct contact with your creditors could end up saving you a great deal of money.

The first step is to write down what you want; lower interest rates, waived late fees, and even settling card balances for less than you owe. Next, call your creditors and tell them what you want. At the end of the day, you have absolutely nothing to lose and everything to gain.

For example, Bank of America, among the biggest card issuers, stepped up efforts to waive fees and lower interest rates for distressed cardholders in 2008, spokeswoman Betty Riess said. It modified nearly 700,000 credit card loans last year. [sun-sentinel.com]

"We would evaluate any pricing decision based on the individual customer's performance with us as well as external credit risk factors," she said. "We understand that many of our customers are struggling to meet their financial obligations and our objective is to help customers who are experiencing financial hardship."

If you are struggling with credit card debt, pick up the phone and call your creditors today. Every moment you wait is another dollar you lose.

Have you re-neogiated your credit card debt recently? Leave us a comment and tell us about your experience