Despite what you may hear, you can reduce credit card minimum payments if you take the right approach with your creditors.
Having the weight of the world on your shoulders as you open bills each month is no way to live your life.
I know the stress and pressure that comes with not knowing where your next meal or mortgage payment may come from because of rapidly increasing minimum credit payments.
The truth is, you can make a difference by working with your creditors as long as you are well armed with information before you try to negotiate lower balance amounts, lower interest rates, and ultimately, lower monthly payments.
Here are some tips to consider: 1) Understand Debt Structure - In almost all cases normal credit card debt is actually unsecured debt.
This means there is no collateral or any other means for collecting on the debt for the creditor.
They can not, in most cases, take your home, your car, or any of your assets in leu of cash payment.
The only real danger is if your credit debt and your mortgage are with the same lending institution, and even then, it is not likely to happen.
Understanding that the creditor will try every ploy possible to get as much cash out of you because they have no other recourse gives you a very powerful negotiating position.
2) Do Not Avoid Talking to Creditors - The process may become lengthy as you try to negotiate new terms.
The creditor will likely not move very much early on, but over time you can often achieve desirable results.
Do not take vigilante approaches to phone calls, and do not avoid talking to your creditors.
Open communication lines are critical, and keeping your cool when talking is also critical.
No matter how much pressure they apply, remain calm and keep answers to basic information only.
Do not make promises you can not keep.
Dealing with debt is a tough subject, but if you really dedicate yourself to improvement, and to the task if getting lower monthly payments, you will be surprised with the results.