How to Lower the Credit Card Payoff Balance
- 1). Create a spreadsheet that lists all your credit cards, including the total outstanding balance and interest rate. Sort the spreadsheet by interest rate, since focusing on the highest interest rate cards gives you the best return on your time.
- 2). Locate the customer service number for the highest interest rate card. The number should be on the back of the card. Ask to speak to a supervisor, since the customer service representatives will not have the authority to lower your payoff amount.
- 3). Explain your situation to the supervisor. Be honest about why you are unable to pay the total amount.
- 4). Make an offer that is less than what you can afford to pay. The credit card issuer is likely to make a counteroffer, and starting low will give you more room to negotiate.
- 5). Negotiate a payoff amount with the credit card company, and insist on receiving a settlement offer in writing. Review the terms carefully and make sure the payoff amount matches what you discussed on the phone.
- 6). Submit the signed payoff agreement, along with your check for the negotiated amount, to the address listed on the form. Make a copy of the document for your records.
Source...