We have roughly $10,000 debt

We have roughly $10,000 debt from $4000 loan and about 6000 in credit card. My wife’s parents are going to give us $6000 to get cought up because we are always behind and so we end up paying late fees and over limit fees. Plus our mortage a.r.m. keeps going up. Our credit is already in the pooper. We would like to make this money stretch as much as posible because we have other bills too. ( medical, power, phone and so on) Question is, if we negoiate a settlement with the cc companies, will that hurt oure score even worse. My wife wants to pay off loan ecause it is 25% interst. I say that we need to deal with the credit cards because of the over limit and late fees. Also I have read that if your credit cards are max out, that hurts credit worse. So, should we try to just pay on balance or try to get settlement with the credit card companies ?

You can negotiate the percentage rate that your cards are at say 6.9% down to 3% and then tell them that you are willing to make a huge payment also if they say that they cannot ask to speak with their supervisor …all credit card companys will do this you have to be firm with them. I’ve heard of negotiating down the rate on cards but am not sure how to do it. I’d like to try that if I can- I’ve been with one card for 10 years and would like to stay with them, but with a lower rate. Do you have to have another card offer to use as leverage or can one negotiate successfully by making a large payment?

This is what I used….hope it helps:

Call your credit card companies, tell them you’ve got offers for cards at lower rates and ask them to lower your rate. If you’ve paid regularly, they are likely to negotiate. If the company says no, tell them that you will be closing your account this week and transferring your balance to a competitor who offers better rates. So there’s no doubt about your seriousness, tell them the name of the competitor you have in mind. (It shouldn’t be difficult to come up with a name, since you’re probably constantly getting applications in the mail from credit card companies who want you to transfer your balances to them.) Ask to speak with a supervisor. Supervisors have the authority to give you a lower rate right then on the phone. In many cases, you can cut your rate in half simply by asking.

Not sure what to say? Follow this sample script:

“I have [name of card] with you and my interest rate is [X] percent. I received another offer in the mail from [other bank’s name] for [X] percent, but before I take it, I want to see if you can lower my interest rate instead.”

If the representative says they’re not authorized to do that, you say:

“Look, you and I both know that if I transfer my balance today, next week your bank is going to send me an offer to come back at an even lower rate. Why don’t you just save the bank the cost of that effort by giving me several points today?”

If the rep says it’s not possible because your credit card is at a fixed interest rate, you say:

“Actually, that doesn’t have anything to do with whether or not you have the ability to lower my interest rate. A fixed interest rate only means that my rate doesn’t vary with fluctuations in the prime rate. In fact, the bank can raise it on my account at any time by just giving me 15 days written notice. And the bank can, if it chooses, lower the rate today.”

If the rep still says they’re not authorized to do that, you say:

“I’d like to speak to your supervisor.”

Then speak to a supervisor and follow the above script again.