How come debt consolidators can "negotiate" lower rates but I can't?
I read that you should try to negotiate lower interest rates with credit card companies but when I tried, they basically said bite me. So the next thought was researching debt consolidation services but those look a bit sketchy.
I read that those debt places can "negotiate" the rate down to 9% but my question is how? If they are basically buying my loan from me, what makes the credit card companies NOT say 'bite me' to them like they did to me? And I also heard that the debt consolidation ruins your credit too....and help is appreciated.
mtvtoni2007-08-29T11:15:14Z
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Generally money is delegate active. When you are a customer, the truth is some people give you a fare price. Some locations especially in high cost items like homes, autos, and furnishings are union teamed investor clubs. They use far too many plan b for themselves add ons. This is truly the case in money loaners. The collection for bank like business is severe, paid in labor and what you see is police their property. Some do work. Not many are healthy minded about fareness, health, food, or safety. The overlords of all this authority is rare, yet they use force. What your not hearing about is what is a local bad money site. The public image of banking has to be good, it is important. As an indiviual you need be active in money management teams like Red Cross, education, prayerful churches, book clubs to have fresh ideas. Please do not equate television with intelligence. These tools of mass management mean to be helpful, they may be scientically chose voices that even make some people shop! Keep in mind that your intelligent life is supportable with the continuing choice to belong to fare minded action. Here is a good idea, keep in mind that until 2009 all the bills are actually paid by the world's 2 richest people, paid ahead for you. This positive planning is what they hope will guide you into a solid process team.
First let's get the wording right. Debt consolidation is where you either get a loan that covers all your debt or your sevaral debts stay the same but the debt consolidation(DC) company gets your check and divides the payment among the people you owe. This company provides the service to the individual creditors of getting them dependable cash flow when the borrower(you) falls behind. So, in exchange for regular flow of cash, they give the DC a lower interest rate they then offer to you.
you have to be confident and persistent. and also remember that the truth is when you call to negotiate your own debts, the hourly worker on the other end of the line looks at you as a "deadbeat" (sorry, reality hurts).
debt consolidations SOMETIMES work because they are a detached third party entity. be very careful if you choose to go the debt consolidator way, check the better business bureaus, see if consolidator is profit vs. non profit. write back if you need more help.
I got a credit card out of college when my credit was average. My interest rate was 18%. Since then ( 5 years later) my credit score has gone way up and I have never had any credit issues yet they still have not lowered the rate. The other day I called them and asked them for a lower rate, they said "no" at first. So I told them fine I am cancelleing my card, they connected me to someone else who procceded to lower my rate to 12%. So clearly, it can be done. Any interest to a credit card company is better then none.
DO NOT use credit solutions. I am currently digging myself out of the hole I am in by following their advice- and now I am poorer on top of that because I paid them!!
You will never get anywhere by talking to the average customer service rep. You need to contact the credit card's "hardship" department or speak to a manager or other person who can actually authorize a lower percentage rate. Depending on how much you owe, it is in their best interest to negotiate than to let you default on the card because chances are it won't get paid. If it's already in default, it's too late to negotiate lower interest because they've already written it off- save up a lump sum and negotiate a settlement.