How to Negotiate a Credit Card Balance That Won't Result in a Charge-off

Your credit card company will expectedly charge off your account if you're more than six months past due. If nearing the six-month period, attempt to negotiate your balance for less than you owe to avert a charge-off and keep this derogatory item off your credit report.

Instructions

1

Prepare your personal finances to settle the account. You will need a lump sum to negotiate your credit card balance. After careful review of your disposable cash, settle on an affordable amount.

2

Approach your credit card company. The company that handles your credit account will not suggest or propose a debt settlement. You must initiate the process by contacting the company via phone or sending a certified mail request.

3

Provide details of hardship. Give sound reason behind your debt settlement request. Indicate any financial hardship, such as job loss or divorce. Disclose information about other outstanding debts and submit evidence (by mail, email or fax) of your present earnings.

4

Let the creditor know how much you're prepared to pay to settle the balance. The initial offer shouldn't be the maximum you're able to spend. Expect some bargaining from your creditor. The creditor will likely seek a higher settlement.

5

Confirm that the creditor will not charge off the account once you pay the settlement. Get this agreement and the settlement agreement in writing from the creditor. Send your payment after reviewing the agreement.