5 things to do when credit card companies start threatening you

Cynthia Stewart
May 7, 2007
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As credit card debts pile up, constant calls from lenders start nagging you. Coercive initially, the tone changes increasingly threatening with passing time. Soon, a person with credit card debt avoids and tries to shy away from these calls. But will this solve the problem? No it will only get worse. The solution lies not in ignoring these calls but facing them in the right way. Almost every lender will be willing to negotiate the credit card debt terms with people who are facing problems while repaying them. But, the fact remains that the borrower and creditor must talk and work out a mutually agreeable plan for repayment. The five tips in this article will help explain your point clearly to the lender and get instant relief from harassment.

1. It is important to call the lender and explain your situation, whenever you think that financial difficulties will hinder in your repayment schedule. The sooner the better. Waiting for the lenders to give you call you will only go against you. Explain the situation clearly to the lender.

2. If you anticipate any promising financial outcome that can change the repayment scenario, inform the lender about it.

3. Tell them about what type of repayment plan you can afford. Given the uncomfortable situation you are in the lenders will definitely appreciate your willingness to repay and will try to settle on a repayment plan that you can afford, though they will safeguard their interests in this process.

4. Document everything that you negotiate with the lenders. This will help you keep track of things and will help you in case things take a legal turn. Negotiate with the lenders that this reduced and revamped payment terms don't reflect poorly on your credit score.

5. If creditors don't agree or resist a reduced payment, you can contact a credit counselor. This can help you avoid the late fees and reduce the payment burden. If everything else fails just keep on sending the monthly minimum amount to the creditors. This will keep the harassing communications at bay. In the meantime keep on calling the lenders to get a favorable solution. Remember perseverance pays, and the lenders also want their money back. A legal tangle is the last thing on their cards.