How to Request a Credit Card Charge Off Settlement

Credit is important if you are looking for financing or even securing a job these days.The average outstanding credit card debt for households that have a credit card was $10,679 at the end of 2008, according to a 2009 Nilson Report. One main ingredient in your credit score calculation is factoring in your charged off or non-paid accounts to creditors. If you are interested in repairing your credit, you may be searching to find out how you can resolve old unpaid credit card debt. Debt settlement is one way to repay charged off debt, and even have it removed from your credit bureau report if handled correctly, improving your credit score.

Instructions

1

Review credit bureau report. Here you will find the creditor information and pertinent contact resources such as mailing address and phone number. It is very common to find that the original creditor has sold the debt to a collection agency; therefore, you will need to be in touch with them. Reports can be ordered online, by mail or by phone. You can order all three credit bureau reports free once per 12 months at AnnualCreditReport.com.

2

Contact the creditor to determine the balance owed. Compose a letter requesting the current balance due or payoff amount of debt. Mailing a letter is the most efficient way to handle the communication, as you can request a return receipt for your records.

3

Request a debt settlement. Once you know how much needs to be paid off, you are ready to negotiate a settlement agreement. Many times the creditor or collection agency will contact you first initiating a settlement offer. Creditors usually settle the charged off debt for pennies on the dollar, if you are in the position to pay in full. Always get in writing the settlement agreement, and the guarantee that the delinquent debt will be removed from your credit report, before sending in money.