How to Settle Your Credit Card Debt
- 1). Work out a settlement offer that you can realistically pay before you contact your creditor to settle your debt. Include specific payment dates with your offer. Don't expect to get an extremely low offer approved for a few cents on the dollar, based on claims in advertisements issued by some debt settlement companies. Consider that professional debt negotiators often get settlements that amount to 50 to 60 cents on the dollar of the total debt owed, according to a Bankrate website article by Dana Dratch.
- 2). Bear in mind that creditors are generally unwilling to offer their customers debt settlements unless they're at least 90 days behind on payments. Increase your chances for getting your settlement accepted by offering the largest lump-sum payment you can instead of offering to make several small payments to settle your debt for a specific amount. Consider that your creditor may be less receptive to a payment plan that extends over several weeks because regular payments on the account already are past due.
- 3). Find the phone number for your creditor's customer service department on your credit card bill and contact that department to ask for a debt settlement. Resist the urge to give a detailed account of your financial problems to the customer service representative who takes your call. Simply provide a good reason for needing a debt settlement, such as unemployment. Persist in your effort to settle your debt by asking to speak with a
supervisor if the representative turns down your settlement offer or tells you that your card issuer doesn't offer settlements. - 4). Call back another day and explain again why you need to settle your debt if you're unsuccessful in getting a settlement the first time, because you may get a more cooperative person on the phone. Be calm and don't rant. Remember that your creditor isn't obligated to offer you a debt settlement even if you have a good reason for falling behind on your payments.
- 5). Ask your creditor to accept your settlement offer as full payment for what you owe before closing the deal on a settlement. Don't skip this step because it can help you avoid dealing with collection agencies that may attempt to collect the remaining balance on your account after you settle your debt. Get all settlement agreements you obtain from your creditor in writing before sending any payments you agreed to make.
Source...