Had anyone ever negotiated credit card debt down? I have a Chase Sapphire Reserve card and my balance had gotten out of control. They called to ask if I was OK and was wondering if anyone’s done this

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See if you can apply for a personal loan from another lender to pay that debt down at a lower interest rate. Then, consider getting another credit card and getting a balance transfer with a 0% APR offer. Pay off as much money as you with that new credit card and you’ll save thousands on interest. I’m just finishing up this process myself and it was one of the best things I’ve done financially

likehelpful

I second finding a card with free balance transfer with no interest for 12-18 months. I opened a chase slate card and was able to do that. Assuming your credit has taken a hit, I would try to negotiate opening a card like this.

Then work on budgeting. YNAB helped me get my spending under control, pay off $25k in a few months, and start saving.

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Life happens and that’s why cc debt is an option for some of us. Don’t let those that are great with their finances get you down.

That being said, I also rec a balance transfer! Then make huge efforts to pay it down. This is a great time too with all the assistance available!

My husband and I just paid down 17k in debt in a lump sum last week. It was scary but I’m glad we did it! We haven’t been shopping/going out or anything the past couple months with the pandemic so I mean I think that worked out. Also our federal student loans (with a significantly lower interest rate) are on hold so I put that extra 2,500 a month to the cc debt which had like a 14% interest rate.

Best of luck! Happy to discuss further if you want!

likeuplifting

Try telling chase you are going to transfer to a 0% card unless they do something for you, like waive some portion of interest and convert you to zero interest for X months. If you have a high income (relative to the world not lawyers in biglaw) they may want to keep you as a customer- one day you will buy a house, etc.

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Happened to me my first year of practicing - got a personal loan with a low interest rate. It instantly boosted my credit score and I was able to repay the personal loan over the next year.

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This is why you should pay your balance in FULL every month.

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OP, understandable, shit happens and people go into debt, just be smart about it and don’t keep that debt where you’re paying top interest, as you always do on a credit card.

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Another option would be to see if you can get a small line of credit at your bank. Use the LOC to pay of your credit card and then pay off the LOC. A LOC will have a lower interest rate than your credit card. Mine is prime + 0.5%. You will also have the flexibility with the line of credit to pay as much or as little as you can afford to in a month.
Continually transferring to a new credit card could impact your credit score every time you make an application to start a new card.

helpful

Careful about resolving debt problems by taking out more debt. One of my practice areas is bankruptcy and I see clients end up in this viscous cycle all the time and end up with a false sense of security and dig a deeper hole.

I have negotiated plenty of credit cards down but in the past couple years, it’s been hard. When the economy is doing well, credit card companies are less likely to negotiate any of their balances because they know that they can probably get the full balance out of you. However, when the economy is taking a hit (aka now), they are more likely to negotiate their balances just to get paid. HOWEVER, you only have negotiating power if you are offering a lump sum. You can’t negotiate a balance down and still make payments. So my suggestion is, reach out to your friends and family first and see if they will help you. Is it embarrassing? Yes. Does it suck? Absolutely. But suck it up and put your pride aside for a minute. If they can help you out, you can likely work out an interest free repayment plan with them. Take the money they give you, and use it as cash in hand negotiating power with your credit card company.

Good luck!

helpful

How much?

Keep your head up! You're in a strong profession and that amount of debt isn't unconquerable if you take action and work it down. Good luck!

uplifting

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