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Negotiating With Creditors

The credit card companies include those which issue general purpose credit cards (Visa, Mastercard and similar) and the various store cards which also provide credit facilities. These are lumped together as their internal processes for dealing with defaulters tend to run along the same lines, and they should be dealt with in a generally similar way. Credit card companies tend to follow very closely the stereotyped sequence of escalation described previously, and the standard pattern of negotiation previously described should be followed closely. Credit card companies in particular are used to defaulters and are usually eager to negotiate in order to avoid having to take harsh action. In general, a high level of communication should be maintained with them, and regular small payments should be agreed (and adhered to) whenever possible. But don't overextend yourself when making promises - it is generally much better to go for a temporary suspension of payments than to make a promise then break it. If you do find difficulty with sticking to, an arrangement, don't wait until you have missed an agreed payment but telephone the company to explain the situation and try to come to another arrangement. They will appreciate your keeping them informed even if the news is not particularly good - if the right image is maintained, a great deal of leeway is usually possible.