How to Negotiate Cash Payoffs for Credit Cards

Your credit card company may readily negotiate a cash payoff for your credit card if you're experiencing financial trouble and contemplating bankruptcy. Called a debt settlement, credit card companies don't negotiate payoffs with everyone. Creditors lose money with settlements. However, since a bankruptcy discharge might eliminate the debt, some creditors are prepared to negotiate a cash payoff to recover a percentage of money owed.

Instructions

1

Prepare your negotiating strategy before calling your credit card company. Check your available cash and determine what you can spend on a cash payoff. Creditors may only accept your settlement if you have accessible cash to pay the debt in one payment.

2

Call your credit card company. Ask the person who answers the phone to transfer your call to someone who's authorized to negotiate cash payoffs or debt settlements.

3

Convey your plans to settle your credit card balance for less than you owe with a cash payoff. State how much you're willing to pay to satisfy the balance.

4

Discuss terms and compromise to reach a settlement agreement. If your credit card company recommends a higher, but affordable payoff amount, accept the offer to satisfy the balance. Do not agree to a settlement that you cannot afford.

5

Declare your plans to file bankruptcy if you can't agree to a payoff amount. Creditors may agree to your terms and accept your cash payoff if you're filing bankruptcy.

6

Ask for a written statement to confirm the payoff agreement. The creditor can send the confirmation letter by postal mail or fax.