How to Settle a Past Due Credit Card Balance

Credit cards can come in handy for emergencies, or for times when you do not have cash available for a purchase. Sometimes people end up in a financial situation where they are unable to pay the balances of those purchases, or even the minimum monthly payment. If you are in a situation where your credit card balance is past due, you can usually settle the debt with the creditor. Sometimes, you may be able to settle for less than you owe.

Instructions

1

Contact the creditor that is listed on your credit card account statement. Provide your account number and name, or other requested information.

2

Explain to the company representative that you understand you have a past due balance and that you would like to settle it.

3

Negotiate and agree upon a settlement amount to close your account and erase your debt with the company. Also agree on a form and time frame for payment. Settlements are usually on good for a fixed amount of time before your balance is raised to its original amount.

4

Ask the representative to send you a formal agreement, or "proof of pay-off" letter. This will provide you with proof of your settlement in cases where there is a discrepancy between your accounts of the situation and those of the company's.