How do I Negotiate a Money Settlement Offer for Credit Card Debt?

Credit card debt can be easy to get into but hard to get out of. There are many debt settlement businesses and organizations that claim they can help you get out from under your credit card debt by paying only pennies on the dollar. Although these companies can help debtors settle their debt, many of them charge for this service and the fees can be hefty. While some people feel more comfortable getting help when negotiating a debt settlement, this is something you can do yourself.

Instructions

1

Gather your credit card statements, paperwork on other debts and information about your sources of income. Examine these documents and make sure that you really aren't making enough money to pay back the debt. Credit card companies don't have to agree to a settlement and likely won't if they feel you are making enough money to repay your debt.

2

Determine which credit cards will be the hardest to pay if you have more than one. Take both balance information and interest rates into account when making this decision. The card that is costing you the most money is the one you should attempt to settle first.

3

Calculate how much of a lump sum you can pay on the credit card you want to settle. Although you may be able to negotiate for a lower interest rate or a reduction in fees, credit card companies are most likely to agree to a settlement if you can make a single lump sum payment.

4

Call the credit card company and ask to speak to someone who is in a position to make settlement arrangements.

5

Explain to the credit card agent why you are having trouble paying your debt and ask about settlement options. As long as you are polite and respectful, there is really no wrong way to ask for a debt settlement. Some people begin by offering to pay as little as 15 percent of the debt in order to have plenty of wiggle room during the negotiation. Other people simply tell the credit card companies the highest amount they are able to pay and see if the company will accept the offer.

6

Obtain a written verification of the settlement you reach from the credit card company. You should also always take and keep notes regarding who you talked to, when and what was discussed.

7

Pay the credit card settlement as agreed, keeping a copy of the check and any other paperwork that was sent to the credit card company along with your payment.