I want to pay off my high interest credit card but I want to lower my interest rate without having to go through a debt management program. I am willing to do anything or work with the credit card company to pay off my debts within 5 years. How can I go about negotiating my interest rate with the credit card companies without having to go through a debt management program.
Have you contacted them? I'm not sure what they can do, but it doesn't hurt to ask them.
Some people have had great success with DMPs. It's a YMMV type of thing. For me, it was a horrible mistake.
More than likely the DMP will not negotiate a lower interest rate, its more of a selling/marketing talk. On top of that they throw in some monthly fee, and you get your credit cards closed with a owed balance.
I reallize some people may find it easier to lump everything into a debt program, so you have 1 "easy payment". I on the otherhand decided to tackle it myself. I created a sophisticated spreadsheet on my computer that list all my credit card debt, finance rates, utilization %, credit limits, interest since the beginning of this year, which cards have rewards and/or annual fee, etc... Its really put thing in perspective for me, especially seeing how much money I've been throwing away. I'm doing an alright job, just finished paying two credit cards off!
As for negotiating a lower interest rate, you can call theme and try. It may not be easy, ask for a “credit account specialist". Rather than just simply asking for a lower interest rate, have a plan and choose your words carefully; tell theme how long you have been a customer, you have been paying ontime (hopefully you have, don't lie), you are considering switching now or in the future. Be polite but firm; if you can't get anywhere then ask if they have a "retention department" or ask to speak to a supervisor.
I remember in 2009 I received a letter from Citi stating that with the economy they are having more and more people not keep up with their payments. Thats when it said that due to increased cost on their part they had raised my APR. I called them and was on the phone for about an hour going higher and higher. Well, either it was my going higher or my "I have nowhere to be anytime soon" attitude, I not only got my APR LOWERED but they also increased my CL.
So, I would call the CSR and ask, then go higher, then higher, then worst case scenario, EO. I havent heard of many people not getting a little of what they asked for when speaking with the EO.
Good luck to you
Please call the lenders
In most cases they will workout a payment plan with you
They would rather see some of the money than none but you have to take the first step and ask for help.
The only down side is they may close the accounts YMMV
Another options depending on your credit is a personal loan to pay off debt and have a fixed monthly payment
And then throwing any extra money you may get over the course of the loan to payoff early
Other options home equity loans
Just giving some idea's
Best wishes and bless you
Here is the dilemma I am in. I have never miss a payment, I have never been late for a payment but no one will work with me because my account is in the negative.
I just purchase a home so I don't have any equity and I know my car is not worth the value of the loan I need, which will be around $20,000.
I want to take a loan out, if I can get a good interest rate and if the loan will cover the amount I need to pay off. I do not want to take a hit on my credit score to shop for loans.
I just trying to figure out the best way I can handle this.