Can You Negotiate Your Own Credit Card Debt Settlement?
What You Need to Know About Credit Card Debt Settlement Agreements
There are companies all over the country who promise they can get you a great credit card debt settlement, reducing your debt by as much as 50 percent with little to no effort or money. Unfortunately, they're offering little more than pie-in-the-sky stories that aren't likely to work out. If you really want to settle your credit card debt, here are some things to keep in mind.
It's Not The Same World
A few years back you could settle your credit card debt for pennies on the dollar. It wasn't unusual to see a credit card debt settlement of 80, 60 or even 50 percent of the original balance. However, when debt consolidation became more popular and more consumers began trying to reduce their credit card balances, the credit card companies began tightening the belt.
While many credit card companies do indeed offer credit card debt settlement agreements, there are more who do not. Have a high Discover card balance? You're not going to be able to get 20 to 50 percent off by paying it in full. If you're lucky, you can save one or two percent.
What To Do
If you want to negotiate a credit card debt settlement, the first thing you need to do is see if you qualify. A credit card company won't even look at offering you a debt settlement if you're not at least 60 or 90 days past due.
If you are behind in your credit card payments, see if your credit card company offers credit card debt settlement at all. Companies like Discover Card and Citi are no longer making these offers to customers. If they do make debt settlement offers, ask what the minimum amount is that they would accept to consider the debt paid in full.
If your credit card company doesn't make debt settlement offers, contact customer service (not collections) and explain your situation. Tell them you'd like to pay the balance in full and ask if there is any way to waive any portion of the last month's finance charges. While that may not be a lot, it's better than nothing.