How to Settle Credit Card Debt for 50 Percent

Settling your credit card debt for 50 percent of your total balance is possible, but the degree of difficulty will vary depending on the individual situation. For example, someone who appears to be in good financial condition will have a hard time convincing the credit card company to settle the debt for 50 percent. However, if they feel they may lose the entire debt to a bankruptcy or charge off, the company may be willing to work with you.

Instructions

1

Begin saving every spare dime you can to pay off your debt. Credit card companies may be willing to settle the debt for 50 percent, but you should be prepared to pay that 50 percent in full at the time of negotiation. If your debt is $20,000 and you want to try and settle for half of that amount, be prepared to have the $10,000. In the case of higher balances, you may be able to negotiate two or three payments to pay off the credit card debt for 50 percent.

2

Call your credit card company and ask them about working out a settlement. They may inquire as to why you need to settle your debt, so be prepared. If you have bank statements and pay stubs, they may ask to see copies. Very often the credit card company will want to mail or fax you over a packet of paperwork for you to complete before they will work with you.

3

Consult a debt settlement attorney if your credit card company will not work out a settlement agreement for you. Remember, this may cost you a little money up front, so be sure it is something you can succeed at. Most attorneys offer a free consultation, during which they will inform you if you have a good case or not.

4

Contact a credit counseling service for an appointment. They have negotiating power with credit card companies, as that is their speciality. Explain what you need, and see if they are able to help. Find a reputable company that will not charge you any money by calling your county's job and family services department.

5

Speak to a superior at the credit card company. Call every day and always ask to speak to the operator's supervisor. At some point, you will reach someone who is willing to negotiate with you.