Paying your credit card debt is not always easy if you are going through thin financial circumstances. Let alone the debt, the interest rate determined by the APR on your deferred payment of the credit card bills also mounts up if you are not able to clear your bills by the due date, which presents another problem. Most of the time, people go to debt settlement companies in these situations, which arbitrates between the deferrer and the credit card issuing company. the debt management done by these companies is through the method of escrow payments. However, this method is very long-term, taking you to set aside a significant portion of your savings for the escrow payments for several months.
If you do not want to go with the escrow payments with debt settlement companies, you can always negotiate with your credit card supplier by yourself. The basic principle of a credit card company is generating profit for the parent organization, which is often a bank. As long as you are not hurting their profit numbers, the company most often negotiates on debt settlement against your credit card.
You can negotiate with the company on the payment of a lump-sum amount for debt settlement. This method requires having a significant amount of cash on hand. However, the company can also decrease the interest rates or the minimum payment that you have to pay at the end of each billing cycle. Negotiating with the company of decreasing late-payment fees or interest rates can help you pay off your debts in a shorter period as compared to escrow payments.
If you are going through extreme situations such as unemployment, an accident, or health- related issues, you can always negotiate with the credit card company about wavering off your payments without any interest temporarily until you are able to pay them back. This option is not available for all companies, but asking them for a debt settlement on humanitarian grounds can help you in circumstances when you are low on budget.