12 Sep Lower Credit Card Interest and Balance to Avoid Default
Negotiate a lower payment on your credit card. Call customer service and ask for a better rate. “Just work with me.” These proven common sense tips could save you money on your credit card accounts and help you avoid bankruptcy.
More than one out of 10 accounts went 6 months in default last month and that rate is expected to climb according to my sources at industry analyst Moodys.com. Banks are interested in their bottom line and this default rate is not bank healthy. In the past, banks raised rates on delinquent accounts and charged more fees and penalties. As more consumers experience unemployment and foreclosure, banks expect to lose millions as these debtors find comfort in bankruptcy. Some banks are secretly modifying accounts, lowering interest rates and balances in an effort to collect some money now rather than none later. Here is a way for everyone with a credit card to save money regardless of whether you need or can file bankruptcy.
My friend Bobby Shinedown Wilbert is a consumer protection lawyer in Jacksonville FL. He has a wealth of information about the debt collection industry. This morning he tipped me to a Washington Post story by Nancy Trejos about another dirty secret banks do not want everyone to know. Ms. Trejos writes, in her article, Banks Ease Burden of Credit Card Debt, that banks do not want to everyone to call asking for a better deal, but those that do may find the bank willing to work out zero interest repayment plans or lower balances. Ms. Trejos writes that sometimes the bank will reject your first offer, then call back with a better deal. In my Debt Law Network article, Do It Yourself Debt Settlement, I profiled a case of a young man who eliminated over $10,000 in debt through direct negotiation with credit card banks. That case involved lump sum payments. Now it appears some banks are willing to take payment over time.
Tell your friends, tell your relatives. Make the call. Flood the phone lines at Bank of America, Citi, Chase and American Express. Use the toll free number on your statement and call today. Tell them you cannot pay your bill and you need a break. Tell them you read that they can modify the loan balance and eliminate the interest rate. Say the magic “B” word, Bankruptcy, Bankruptcy Bankruptcy, over and over. Tell them Andy sent you.
Andy Miofsky, Esq.
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