How to Negotiate Paying Off Credit Card Debt With Creditors

Consumers have the right to negotiate their debt and virtually all debts are negotiable. Negotiating a debt settlement does takes time and patience but also provides you with a great sense of accomplishment when you are able to reach a successful agreement with your creditor.

A creditor's main goal is to recover money, yet creditors are aware that many situations arise that make it impossible for the consumer to pay his debt in full. The creditor is trained to get the most money and the consumer will need to be patient, polite and firmly stand his ground to negotiate a settlement on debt.

You should always attempt to negotiate a debt rather than ignore the situation.

Instructions

1




Determine the amount you can pay

Closely examine your bill and determine the amount you can pay. Be realistic in your figures. Do not offer an amount you may not be able to pay. If payments must be arranged, know the exact monthly payment and have these figures written down.

A starting offer is generally 30 to 50 percent of the debt.

2




Mail your offer

Mail your offer to the creditor. By mailing your settlement offer, the creditor must reply by mail and this will provide you a paper trail proving acceptance of the agreement.

The tone of your letter should be polite, yet firm, explaining this offer is your best offer. Your letter should include a brief explanation of your situation, the reason you can not pay the debt in full, the exact dollar amount and date you will pay.

3




Yes or no

Wait for the response to arrive by mail. You will likely receive one of three options: an agreement, a counter offer or a denial.

4

Prepare your payment and mail it by the date you specified if you receive a letter of acceptance.

Always make payment with a money order or cashiers check.

5




Making an agreement

Choose to either accept their new offer or determine a counter offer. The creditor is trained to collect as much money as they can from you. Your reply will either be of acceptance and include payment in the form of money order or cashiers check, a counter offer or a reply repeating your original offer was the best you can possibly afford.

Keep in mind that this is not your one and only chance at negotiating your debt settlement.

6




No deal

Do not take it personally if you receive a denial of offer. It is up to you how aggressively you want to pursue the denial letter. You can respond to their letter and make your original request again, being even more firm that you want to settle this debt but your means are limited. You may also decide to place the file aside for a short while, either weeks or months, and attempt to settle again later after some time has passed.

A denial letter should never be reason for you to give up on the negotiation. It can be frustrating to feel as if they've not even given the process a chance but this is a common occurrence and you just need to try again.