How to Negotiate Credit Card Debt After a Judgement

Paying a credit card debt after creditors report a judgment to the bureaus will not remove the judgment from your record. However, a paid judgment status on your report helps if you want to apply for a mortgage or other loan. Creditors are prepared to negotiate credit card debt, and sometimes, they will settle for less than the account balance.

Instructions

1

Obtain your current balance. Creditors may charge additional interest and fees on delinquent accounts. Call your creditor to discuss your present balance.

2

Review your disposable income. You will need accessible cash to negotiate and get rid of your credit card debt after a judgment. Determine what you can spend to remedy your debt problem.

3

Present an offer to pay off the judgment. The creditor may or may not agree to your proposed settlement amount.

4

Discuss the terms of the debt settlement. If the creditor responds with a higher settlement amount, contemplate whether you can afford to spend the amount, then accept or reject the settlement. If you reject the offer, proceed with negotiations until you and the creditor reach an agreement.

5

Ask questions about your credit report. Creditors will not erase a judgment once you pay the balance, but they can update your credit report to reveal that you paid off the judgment. Get confirmation in writing that the creditor will update your personal credit file upon obtaining your payment.