Home Equity Loan

What wording/approach is helpful in dealing w/Credit Card companies/getting balances down..lower % rates?

Don't want the Credit Counseling Companies Don't want the debt consolidation approach Don't want to file Chapter 11 or 13 Don't have any home by which to pull any "home equity" I need to get my "massive" debt down, or will never be able to get a home - ever. Got debt due to divorce, unemployment of 11 months, going back to school 2x & paying for it myself. So, I'm in a pickle, my credit is still 720+, and I feel that the possibility of ever having a home again is slipping out of my fingers - for good. I need some verbal approach technique to use to call these companies, to get them to knock off some of my debt without hurting my credit. What do I say? Will they expect me to come up with immediate cash if they remove some of the balance? What special key words are effective in getting the credit companies to work with you & help rathar than hinder you? 061507 2:10 OC1999 you're answer is very helpful-you have a point-unless I begin being delinquent, they don't care. Mike-I didn't need your spamming. Gary H & Miss Blue - both very helpful answers and I can't break the tie, so I'm leaving it to the Y!A community. PS - Gary's website should be as: http://www.creditinfocenter.com/debt/ Thanks to all three answerers! 061907 1:35

Public Comments

1. If you are current with them there is nothing you can do to have them "knock off" some of the debt. There is no reason for them to do this because you are paying on the account. To be able to knock of some debt you would have to become delinquent before they will even think about doing something like this. But going this route will hurt your credit. You may be able to get them to reduce interest rates. For this you have to have a pretty good history with them and tell them you have an offer with another company for a much lower interest rate. If they want to keep you they will probably match or beat it. Sometimes they will only do it for a few months but anything is better than nothing.
2. Go http://creditinfocenter.com/debt/settle_debts.shtml. They have lots of information about that. Really helpful stuff.
3. When I left a job a few years back I would have struggled to continue paying off all my debts - I called each company and asked what they could do. One agreed to suspend payments completely for a short time, the others agreed to reduce the amount significantly and one even stopped charging interest - without me even asking! It's always worth saying you've had offers of X% interest from another company to see if your current companies will reduce what they are charging you - it's especially advised that you try to negotiate a lower rate if your company has an offer for new customers. If you have a good history it might be worth trying this before you admit to having struggles paying but as long as you're clear you should get something like what you're after. Good luck!