How to Ask Credit Card Companies to Reduce Your Balances

If you do not pay your credit card debt, it will eventually be charged off by the credit card company. In July 2009, credit card companies were forced to charge off over 10 percent of the balances they were owed, according to Moody's. Because of the large amounts of money that are lost through charge-offs, many credit card providers are opting to negotiate with consumers to lower their balances. You can negotiate lower credit card balances yourself without enlisting the aid of a company to do it for you.

Instructions

1

Organize your finances in such a way that you will be capable of making a lump sum payment toward a reduced balance. You may opt to liquidate assets, dip into your savings accounts or have a yard sale. Regardless of how you acquire the funds, offering a lump sum payment will demonstrate a good faith attempt to pay off the debt if the balance is reduced.

2

Call the credit card company and ask to speak to a supervisor. Although most credit card companies are willing to negotiate balances with their customers, many train their telephone representatives to tell callers otherwise to reduce the volume of settlement requests.

3

Tell the supervisor that at this point in time you are unable to pay your bill because of the high balance. Do not immediately ask for a balance reduction.

4

Explain to the supervisor why you are unable to pay your bill. If your credit card company has recently raised your interest rate or you have recently lost your job, say so. This will add credibility to your claim that the balance is too high.

5

Mention Chapter 7 bankruptcy as an option. Even if you have no intentions of filing for bankruptcy. Credit card companies know that when a person files for Chapter 7 bankruptcy, they are unlikely to get paid at all. This will make the credit card company more eager to offer you a lower balance.

6

Wait for the supervisor to bring up the possibility of reducing your balance.f he does not, call back and use the same method to elicit a settlement offer from a different supervisor.

7

Begin negotiating a new balance. Always start the negotiations out at less than you can afford since a credit card company is unlikely to accept your first offer.

8

Bring up your ability to make a lump sum payment toward the new balance if the supervisor agrees to your price.

9

Request a copy of the agreement in writing before you submit any payments toward the debt. This protects you in case the credit card company is not willing to honor the agreement after you have finished paying the lower balance.