There are several reasons to negotiate with credit card companies. One is to lower overall debt and monthly payments. If a credit card company offers high interest rates, annual fees and other charges, the amount you’ll end up paying in the long run is much higher than the purchases that you charged.

You may be able to negotiate with credit card companies for better rates. Just call the company and tell them that you are considering transferring your balance to a card with a lower rate. You’ll be more likely to get a positive response if you have a history of making payments on time and have been a customer for several years. You can also ask about eliminating fees like annual membership fees and other charges.

A financial crisis is another reason to negotiate with credit card companies. Job loss, unexpected medical bills, and other financial emergencies can make it difficult to make payments on your credit cards. If you’ve been unable to make payments, or know that it’s going to be difficult to pay in the future, the first step is to call the credit card companies and let them know you are having difficulties. It’s better to confront the problem immediately, rather than avoid talking to credit card companies.

First, call your credit card company’s toll free number. Explain the problem to a customer service representative and ask to speak to an account manager. Ask if your interest rate or monthly payment can be lowered. If that isn’t possible, and you have cash available, ask if you can settle the account for a lower amount. This is known as a lump sum settlement, where only a portion of the dept is paid and the credit card company writes off the rest.

Some credit card companies may be willing to negotiate a lump sum payment for significantly less than the amount that is owed. It's cheaper and easier for credit card companies to negotiate with credit card holder than to turn the amount over to a collection agency.

The disadvantages to a lump sum settlement are that it will be noted on your credit report and may affect your ability to get credit in the future. You also will need to come up with the lump sum amount and pay it as agreed. If you don’t make the payment, the agreement will be nullified.

If you are having difficulties making payments, credit counseling may be a good option. Experienced credit counselors will work with the credit card companies and help you to make a solid payment plan.

When you make arrangements with credit card companies, make sure you get all information in writing before sending in any payments. Keep a record of all calls and correspondence with credit card companies and note the names of the employees you talked to.

Negotiating with credit card companies may be easier than you think. While some credit card companies won’t budge when it comes to settling debt or lowering fees or interest rates, many are willing to work with their customers.