How do I Settle Credit Card Dept?

Credit card debt can bring down your credit score and cost you much more in interest and fees than the amount you originally charged. Some credit card companies are open to settling delinquent debt and credit card debt that has been sent to collections. Some companies may even negotiate with you before your credit card account is delinquent in order to avoid the cost of collection.

Instructions

1

Make a list of your credit card accounts, their phone numbers, the amount owed on each card and their interest rates.

2

Ask creditors if they offer a forbearance program. This will suspend your payment obligation for a set period of time. This program does not reduce your owed credit card debt but it can give you enough time to get yourself into a situation where you can catch up on your payments.

3

Ask what options you have for reducing or settling the debt. Some companies may settle for a lump-sum payment, and others may cut your interest rate and waive fees. Another option is to work out a payment plan. Be prepared to make multiple phone calls to each company until you work out a plan.

4

Negotiate the details of your credit card debt settlement. Common areas of negotiation include how the credit card debt settlement is listed on your credit report and the payment amount and terms.

5

Request a copy of the credit card debt settlement in writing. You can use this copy of the agreement to confirm the terms of the negotiated debt settlement. Make the agreed payments only after you receive the written documentation of the agreement.