How to Get a Credit Card Company to Accept a Lesser Payoff

Credit card companies make business decisions every day. To convince them to accept a lesser amount than the entire balance you owe, you will need to provide complete financial disclosure to aid the companies in their determination. This is not an easy process because the law is on the side of the credit card companies. They can, and will, sue you to recover what you owe.

Instructions

Getting Started

1

Contact the Customer Service Department. The information can be found on your credit card statement. Ask to speak to the Collection Settlement Department or the department that handles settlement matters. You will have to convince this department that long-term repayment of your debt is not possible.

2

Inquire about the criteria for reducing the debt by reaching a settlement.The company may not divulge this information on the first contact so be persistent. Some companies may recognize that the longer they wait, the less money they may ultimately receive from you. These companies will offer to settle for less money, earlier in the process. Other companies will hold out longer.

3

Send your financial statement and/or documents to the credit card collections department. Follow the instructions given to you by the customer service representative. Consider using email if you have several documents that could be cumbersome for you and for the recipient.

4

Follow up regularly with the credit card company. Answer any additional questions that are posed by the company so that any unresolved issues are settled quickly. Be forthright in your responses; failing to do so may result in the denial of any settlement agreement at all. You could also face legal collection action, depending upon the state in which you reside.

5

Send the settlement payment(s) as soon as a dollar figure is reached. You should send the funds in the format you agreed upon with the credit card company. If you fail to abide by the terms of the agreement, you will most likely render it null and void and risk owing the entire balance again.