How to Get Lower Payments on Credit Cards |
By: Kenneth Long on February 4, 2010
.jpg.aspx) Your credit card payments might feel out of control, but you may be able to lower your payments. There are two primary approaches to lowering your minimum payments on credit cards.
Prove Financial Strength
Credit card issuers want to make sure that they retain the most profitable customers. That means, they want for you to pay higher finance charges while maintaining a low risk of default.
To prove your financial strength, you must demonstrate two desirable traits. First, you must have an excellent credit rating. You generally need to have a minimum of a 670 credit score, with preference given to scores higher than 720.
Second, you must show them that you have surplus discretionary income. The only way to prove this is to make regular overpayments above and beyond your minimum monthly payment. To prove your financial strength, follow the steps to earn a lower interest rate on your credit cards so that your required payments will drop.
Ask for Help
If you truly need a lower payment on credit card bills, then you likely lack the high credit and extra cash to earn lower rates and payments. To get lower payments, you may need to take a different approach.
When dealing with just one credit card, there is a possibility that you may get a temporary reprieve on interest so that you payment is slightly lower. If you have experienced a true financial hardship such as a job loss or medical emergency, ask your credit card issuer for hardship consideration.
They will require you to demonstrate two facts. First, you must have experienced a bona fide serious life event that has caused financial difficulty. Second, you must prove that you expect to be able to bounce back and resume your normal rates and payments within six months. If you cannot prove both facts, then you are likely to be denied in your request.
When dealing with multiple credit card issuers that you are having trouble repaying, it is time for you to pursue credit counseling. Rather than judging you, an Accredited Financial Counselor can help you evaluate your own financial situation and develop an action plan.
This action plan may include a new strategy in which you can handle your own repayment. It may include a debt management program as a means for lowering your interest rates and getting your payments reduced. To begin, request your private counseling session. |
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