That is not the case and it is important that you know that. Believe it or not, credit card companies are becoming increasingly willing to engage in credit card negotiation. Credit card issuers realize that consumers defaulting on their payments is becoming a serious problem to their bottom lines and they are therefore becoming more willing to negotiate fees, interest rates and payment plans.

Bear in mind that the credit companies themselves are going through rough financial times. Many of the banks and financial institutions that issue credit cards are themselves on the brink of bankruptcy. We recently saw the federal government pass a massive stimulus plan aimed at reviving the economy. Credit card companies were a big recipient of the stimulus money. The point here is to not feel ashamed or embarrassed.

The following 6 tips will help you with your credit card negotiation:

1) When negotiating credit card debt always make sure that you are polite and respectful with the people you deal with. Arriving at a fair and equitable debt settlement with your creditors will be much easier if all parties behave in a civil manner.

2) Do not hesitate to ask for a lower interest rate. Far too many people are actually shy about asking for lower rates. If you have been making payments on time then you should be successful in knocking a few points off your current interest rate. Even if you have been late on some payments you should still request a rate reduction. It never, ever hurts to ask.

3) Request that fees be waived. Fees for such things as late payments and using checks that are tied to your credit card account can become quite costly. Not all credit card issuers will be willing to waive or reduce their fees but some will and you will never know unless you ask.

4) Suggest setting up a payment plan. Negotiating with credit card companies go a lot smoother when they realize that you are proactive and are sincerely negotiating credit card debt that is equitable for all parties. If for whatever reason you are unable to make a payment then having a get out of debt plan maybe agreeable to your creditors.

5) Make sure you get all your negotiated credit card debt deals and writing. While your credit card negotiation will no doubt take place in good faith, you still want to cover yourself by getting all agreements in writing.

6) If negotiating credit card debt on your own does not yield the results that you had hoped for then seek help from a credit counseling service. Often times credit counselors have existing relationships with banks and credit card companies that will be beneficial to their clients.

By following the simple but effective tips laid out here you will see that negotiating credit card debt is not as nearly difficult as you may have anticipated. Successful credit card negotiation can alleviate financial stress and bring credit relief to wary consumers.

If you have unsettled debt that you are ready to put an end to, you can take control. You do not have to go into the poor house trying to repay your creditors for your past mistakes. Instead, you should consider a debt settlement program.

Debt settlement is usually something that all parties are interested in because it will allow you to pay a portion of the debt or all of the debt over a specified period of time. This negotiation allows you to make affordable payments and gets some or all of the money to the creditor to satisfy your debt.

The creditor often offers debt negotiation, and if this is the case, you might want to jump at the opportunity to pay a smaller amount as opposed to declaring bankruptcy.

If you have a pushy creditor that has not offered debt negotiation, you can do it yourself. Simply call up and firmly but politely tell the creditor what you are or are not willing to do.

Tell them that you want to satisfy the debt, but you cannot afford their payments so you need to make smaller payments over a longer period of time. The lender realizes that getting something is better than getting nothing.

You may also be able to reduce the amount you owe with a debt settlement program by telling the creditor you will pay up as long as they get rid of any interest that has been charged to the account. In some situations this is thousands of dollars, which makes the debt repayment much more doable.

Debt negotiation works. It works because it gets the creditor the money that they want and you don’t go broke in the process. This is a very simple way to repair your credit and get your buying power back.

If you suggest a debt settlement program, you may not get an answer right away; instead, it may need to be approved by top officials of the creditor, but chances are they will work with you. Be firm, and don’t let the creditor make you feel bad during the debt negotiation process.

A quality consumer credit counseling service will work with the individual and their creditors to find a payment plan that is workable for all parties concerned.

Creditors will accept debt negotiation for several reasons. The first reason is getting something is better than getting nothing. Debt negotiation is better than forcing a debtor into bankruptcy.

The creditor will receive nothing if the bankruptcy is allowed. By negotiating the debt, the creditor will receive a percentage of what is owed. They also will not have to expend more effort and money on trying to collect the debt.

A second reason for creditors accepting debt negotiations is the creditor has already figured it in as a cost of doing business. As an example, the credit card companies know that a certain percentage of money owed to them will be written off.

The offset for these write-offs is charging a higher interest rate to many customers. Credit card companies earn billions of dollars a year in profit. They have accounted for negotiated debt reduction in their business plan.

A third reason, using the credit card companies as an example, the higher interest rates to cover write-offs, allows for more profit from those paying debtors.

Other businesses negotiate debts for basically the first reason. Getting a debt settled is a means to get some money out of the debtor. Clearing the books of bad or under performing debts keeps the business clean and is less costly in the long run.

Creditors will accept debt negotiation or reduction when confronted with the reality of take this offer or get nothing.  The alternative is the debtor files for bankruptcy; it is allowed and the creditor receives nothing. This is a huge incentive to negotiate.

As we have stated earlier, creditors are more willing to work with you then you may have previously thought. They have absolutely nothing to gain by people declaring bankruptcy.

Seeking credit counselling used to be taboo but that really isn’t the case anymore. Please do not be embarrassed to ask for financial assistance. It will be the first step to achieving freedom and peace of mind.