How Do I Get My Credit Card Company to Settle My Bill for Less Than the Payoff Amount?

Getting a credit card company to settle for less than the payoff money can save you thousands of dollars and resolve your debt without having to deal with a collection agency or lawsuit. The credit card company may be motivated to negotiate with you if you are unable to make your normal payments because credit card debt is unsecured, limiting their options for collecting the debt. In this case, they may prefer to accept some money now rather than risk getting nothing later.

Instructions

1

Assess your current debt situation, assets and wages that could be subject to garnishing. The less you have, the more apt the credit card company will be to negotiate with you because it knows it will be unable to get the full amount owed. This will give you an advantage in the negotiations.

2

Save money for a lump sum payment to your credit card company. If the credit card company agrees to settle, you will need to be able to pay the agreed-upon amount.

3

Obtain the contact number for your credit card, from the credit card company itself or from your monthly statement.

4

Call the company and explain your current financial situation. Make it clear that you cannot make full payments or pay off the total debt but can make a partial payment now. Be polite but firm in your requests.

5

Continue making calls, even if the first few conversations are not productive. Talk to different people in the company and be persistent. Even if they refuse to settle now, the situation may change in a few months.

6

Get the settlement agreement in writing before making your lump payment. Keep this record to prove that the debt was settled for less than the payoff amount. Do not make any payments unless you have a copy of the agreement in writing to prevent the credit card company from later denying the agreement.