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3 Tips to Negotiate a Lower Minimum Payment

3 Tips to Negotiate a Lower Minimum Payment

If you are trying to get in charge of your credit card debt, or if you have recently had a financial setback and are having trouble paying all of your bills, it can be difficult to make your minimum payments every month.  For a lot of people, one solution to this problem can be to negotiate their monthly bill to a lower minimum payment amount.

This is one of the hardest things to negotiate with a credit card company, however.  The reason is that most minimum payments are set to the minimum amount allowed by federal laws.  Typically, the minimum is 2% of the total loan balance. This figure was designed to help people get out of credit card debt faster.  Because the law states that the credit card company is not allowed to accept less than this amount, however, most people are stuck with their current minimum monthly payment.

Tips to a Lower Minimum Payment 

There are a few things that you can do to a get a lower minimum payment amount, however.  They will only lower the payment by a few dollars or for a short period of time, but it might be just the help you need until you’re back on your financial feet again.

1.  Negotiate your interest rate.  A lower interest rate means that less money will be added to your overall balance every month.  That will lower your monthly payment and the amount of that money that goes towards interest.  If you need help with negotiating your interest rate read this (link to article), or seek the advice of a professional debt counselor who is experienced with these type of negotiations. 

2.  Consider debt consolidation.  Debt consolidation will combine all of your credit cards and other loss together into one loan with one monthly payment.  Because these loans have lower interest rates and longer payment terms than credit cards, it’s very likely that you’ll pay less every month than you would by keeping the credit cards.

3.  Try to negotiate the balance of the loan.  This is very difficult to do, but there are lenders who are willing to forgive part of the loan balance, especially for medical debt.  To increase your odds of success, talk to a debt counselor who works with clients in need of financial assistance or loan forgiveness.

About Author: Debt Help Desk

There are tons of sites and articles about getting out of debt. We are different because we are not a site owned or operated by an actual debt relief company. No bias. Our agenda is to help people make smart debt relief decisions- Now let’s help you.

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