25 minutes | Sep 18, 2020

Negotiating with Credit Card Companies

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29 Do you like to haggle? Successful negotiating has been described as the art of letting someone else have your way; its one area of life where a little knowledge goes a long way. Sometimes you can have it your way simply by askinglike with credit cards, for example. Today on MoneyWise, Kingdom Advisors President Rob West has a few tips for us. Haggling is not part of our culture like it is in many other countries. We tend to accept whats offered without asking for a better deal. However, when it comes to credit cards, it would be a good idea to get over that reluctance. The Federal Reserve says that Americans owe more than $1 trillionin credit card debt, with an average household balance of over $8,000. The best solution is to pay down that credit card. But while youre doing that, there are ways to make it easier. Were not talking about negotiating to have the balance loweredthats called a settlement. And while some people find themselves in a financial predicament where they have to negotiate a settlement, we always want to avoid that and pay our debts in full. Proverbs 37:21 reads,The wicked borrows but does not pay back. When negotiating with credit card companies,theres not really a lot of negotiating required. For the most part, its just asking for something and waiting for a yes or noa simple process.Look at interest rates and fees. The plastic in your wallet is a great convenience, but its not cheap, even if you pay your full balance every month. Make a phone call to your credit card issuer. The numbers right on the back of the card.CreditCards.com asked 1,600 cardholders about their experience when calling their issuer simply asking for a better deal. They focused on three areas: (1) reversing a late fee, (2) waiving or reducing an annual fee, and (2) lowering the interest rate. Eight-five percent of cardholders who made at least one request got what they wanted. Unfortunately, only 18% of those polled had ever asked to have their annual fee reduced or eliminated. Even more disturbing is that they were much more likely to ask for a credit limit increase! Why are credit card companies so willing to give in? Two words: balance transfer. They know all too well that most of their cardholders simply can take their business elsewhere by transferring their balance to another issuers card, so, they dont want to lose you even if you pay off your balance every month. Theyll still make a lot of money in vendor fees when you use their card. So they have a vested interest in keeping you happy. Here are just a couple of questions we answered from our callers on todays program: How do I actually cancel a credit card? Is there an easier way than writing letters? Are there any work-at-home jobs that are legitimate? Ask your questions at (800) 525-7000 or email them atquestions@moneywise.org. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources. Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion!Remember that its your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.
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