Credit Card Negotiation

Credit card negotiation is not a new concept but is likely to become a relatively well-used method of effective debt reduction or elimination for many people in the foreseeable future.

It wasn't so long ago that credit card debt consolidation with bank loans was the well-known strategy for reducing or even eliminating card debts. But in light of the current credit crisis and as banks and other lenders tighten lending criteria, credit card debt holders may increasingly need to look toward negotiating lower interest rate credit cards with their existing card companies.

With the ease at which almost anybody can still get credit card credit, not to mention the fact that this form of borrowing is still being widely used to purchase almost anything, it is hardly surprising that so many people across the globe have found themselves in debt trouble far before the credit crunch ever arrived. So, where does credit card negotiation fit into the equation?

Recent findings show that Barclaycard rejected 50% of applications for new loans in the last few months. This suggests that people looking to secure loans to clear credit card debts may increasingly see this avenue of lending closed to them. Meaning, they may well need to consider entering into more serious credit card negotiation for lower rate interest cards with their credit card lenders.

This probability is being further supported by various research studies both in the Uk and US. Recent research findings from MoneyExpert.com for instance, shows that over 3 million Britons are juggling 5 or more credit cards, with 3.2 million having 5 or more cards. Further, that far from this group being the younger generation, it is adults in the age range 35-44 who are the primary credit card jugglers. The fact remains that people in this age range have some credit track record behind them, which in many cases, enabls multiple credit cards. But they are also more likely to have a young family, paying for a mortgage or have other pressing financial responsibilities.

We are all aware that having too many credit cards that carry increasing, rather than decreasing credit debts can rattle some prospective lenders who might perceive multiple credit card holders with too high a debt balance as being 'risky'. This in itself can result in credit refusal or at the very least, securing additional borrowing at a much higher rate of interest; something that is not facilitative of credit card debt reduction or even elimination.

This is where entering into credit card negotiation with the current credit card provider comes into play. Basically, credit card negotiation is about asking your current credit card supplier for help and assistance to clear off card debts. Card companies are unlikely to refuse, since it is in their interest to assist people in managing their debts so they can continue to make payments.

So, the credit card negotiation process must really start right from the existing credit card accounts with the most hard-hitting credit debts. However, now more than ever, there are important factors people must consider before entering into credit card negotiations with their credit card company. This is especially the case, whether or not their credit history happens to be good or bad. It can make all the difference to how good a card negotiating outcome is achieved.

Here's how... You can read the remainder of this article by visiting Credit Card Credit