How to Renegotiate an American Express Bill

A desire to renegotiate an American Express bill suggests you want to pay less than the full amount owed on the account. That's called debt settlement, which American Express and other credit card companies offer on seriously delinquent accounts. Debt settlement has pros and cons: You save money, paying less than you owe; however, the IRS may treat the savings as income, adding to your tax bill. Also, American Express will ask the nationwide credit bureaus to include a negative notation on your credit report indicating you settled for less than the full balance.

Instructions

1

Check your American Express billing statement to determine the number of months your account is delinquent. Generally, American Express will entertain settlement offers when you fall about four months behind. At about six months they may close your account, list it as a charge off and send it to a debt collection company.

2

Call American Express at the telephone number on the back of your card. Tell the representative you are unable to pay your balance and would like to discuss a settlement. Begin negotiating with an offer to settle for 20 percent of the balance. All debt settlement negotiations are different, and you shouldn't expect to resolve the issue with a single phone call. The representative may tell you that your account isn't eligible for a settlement offer, or may demand that you pay 90 percent of the balance to settle. Politely end the discussion and hang up if you cannot reach a deal.

3

Call back every few days and keep increasing your offer until you have a deal. Settlement offers for about half the balance are typical. Get any agreement in writing before making payment.