How to Set Up a Payment Plan for a Credit Card Without Alerting Collection Agencies

Contacting a credit card company directly to remit an overdue payment saves the payer not only fees, but the agony of having the account submitted to a collection agency. Making payment arrangements is easy to do, and can be accomplished with a phone call prior to the account being sent to a collection agency. Once the account is sold to a collection agency, the individual will have to discuss and arrange a payment plan with the collection agency.

Instructions

Contact the Creditor

1

Call your credit card company immediately if you cannot make a payment. Develop an arrangement with the company for your next payment, and for what amount. Do not forego the payment without the credit card company's knowledge.

2

Submit payment to the credit card company as promised to keep the account in good standing. Once the account falls out of good standing, it rolls into the company's internal credit department for collections. At this point you can still make payment arrangements with the credit card company.

3

Once an account is in deferment with the company's internal credit department, it will be referred to an outside collection agency for retrieval of funds. At this point, you will only be able to contact the collection agency to make payment arrangements.