Will Credit Card Companies Negotiate a Lower Pay Off?

Credit card debt is a serious problem for many people, but the amount owed can be negotiated in some circumstances. However, consumers need to know the consequences of settling debt and ensure that it is done properly.

Willingness to Negotiate

Credit card companies are most willing to negotiate pay offs with consumers who are behind on payments. As an account becomes past due, credit card companies begin to worry that the balance will not be paid and may be willing to accept a lump sum payment for less than the amount owed.

Documentation

When negotiating with a credit card company on a pay-off amount, the consumer should have the agreed-upon terms in writing before making a payment. This documentation should be safely stored.

Considerations

Though credit card companies may negotiate a lower pay off, there are reasons that a consumer may choose not to do so. Lower pay offs will typically be noted on the consumer's credit report and will negatively impact the consumer's credit score and ability to borrow money.