Hold the Fort
If you are current in your monthly payments to the bank or credit card issuer, they will not negotiate a reduction of the outstanding principle balance owed on the account.
They may negotiate a reduction in the interest rate you are paying, but they will not reduce the principle balance.
Banks and credit card issuers will only negotiate a reduction of the principle balance if they believe that the payment of the outstanding balance may not be paid in full.
Unless they perceive risk of non-payment, they see no need to negotiate any reduction.
In fact, if you are current with your monthly payments, none of the customer support personnel you can reach by telephone are authorized to negotiate any reduction of principal with you.
Until you have missed several monthly payments and you are in default, you are not in a position to negotiate with the bank, credit card issuer, or collector.
However, as soon as you miss a monthly payment the collection calls will commence.
The bank or credit card issuer will call you and ask for a payment or demand when you can make a payment.
The bank or card issuer will, shortly after you stop making payments, terminate your authorization to use the card.
The first 90 days following the due date of the first missed payment are the hardest to deal with.
There will be a lot of collection calls, a lot of threats, and a lot of pressure on you to make a payment.
Thus, there will be a lot of temptation to give in and make a payment.
If you give in, they have won and you have lost.
In order for you to succeed at debt reduction you need to hold the fort.
Holding the fort is simply understanding that the collection calls and demands are a process you need to go through in order to resolve your debt situation.
If you make a payment, most of it will go towards interest, not principal.
If you want to get out of debt, your payments must be applies against principal.
It is a natural reaction to feel guilty about not making timely and full payments of your debts.
The collector will use this feeling against you; however, you need to resist.
They may negotiate a reduction in the interest rate you are paying, but they will not reduce the principle balance.
Banks and credit card issuers will only negotiate a reduction of the principle balance if they believe that the payment of the outstanding balance may not be paid in full.
Unless they perceive risk of non-payment, they see no need to negotiate any reduction.
In fact, if you are current with your monthly payments, none of the customer support personnel you can reach by telephone are authorized to negotiate any reduction of principal with you.
Until you have missed several monthly payments and you are in default, you are not in a position to negotiate with the bank, credit card issuer, or collector.
However, as soon as you miss a monthly payment the collection calls will commence.
The bank or credit card issuer will call you and ask for a payment or demand when you can make a payment.
The bank or card issuer will, shortly after you stop making payments, terminate your authorization to use the card.
The first 90 days following the due date of the first missed payment are the hardest to deal with.
There will be a lot of collection calls, a lot of threats, and a lot of pressure on you to make a payment.
Thus, there will be a lot of temptation to give in and make a payment.
If you give in, they have won and you have lost.
In order for you to succeed at debt reduction you need to hold the fort.
Holding the fort is simply understanding that the collection calls and demands are a process you need to go through in order to resolve your debt situation.
If you make a payment, most of it will go towards interest, not principal.
If you want to get out of debt, your payments must be applies against principal.
It is a natural reaction to feel guilty about not making timely and full payments of your debts.
The collector will use this feeling against you; however, you need to resist.