How to Get Credit Card Companies to Work With You on Paying Off Debt

When you fall into debt and all of it begins to snowball, it can sometimes seem as though there is nothing you can do. But there is. The sooner you begin negotiating with creditors to settle your debt, the less likely they are to sell it to a collection agency. It is easier to get credit card companies to work with you on paying off debt than it is to get a collection company to do so.

Instructions

1

Gather all recent credit card bills. Stack them in order from most delinquent to most current. This allows you to clearly see which creditors you need to begin negotiating with the soonest.

2

Request each creditor to lower interest rates. According to a study posted on Bankrate.com, more than 56 percent of the people who asked for lower interest got it. The amount you can get your interest rate lowered varies by creditor.

3

Negotiate a reduced, lump-sum payment. If you have the money to pay off a reduced balance, ask the lender how much the company is willing to settle your account for. It will be less than your current total balance.

4

Discuss payment options. If you can't afford a lump-sum payment, explain your situation and discuss a payment plan that is acceptable to the creditor and affordable for you.

5

Set up a payment agreement. This is a new agreement between you and your creditor. It is just as binding as your original credit agreement.

6

Sign and send. The creditor will mail you a copy of your new credit agreement. Sign and send it back before the given deadline date.