Negotiate Credit Card Debt

I have about $18000 in credit card debt. I always make my payments on time and i am in good standing with the companies. Although I am finding it hard to reduce the balance, I really just keep up with the interest. I am going to be coming into a lump sum of money, enough to pay it off, however i would like to negotiate it down. What is the best way to go about doing this. I live in ontario.

You are better off to pay it off completely. It looks better on your credit report that you paid the debt in full. If you want to settle the accounts it will weaken your credit, but the benefit would be that you will keep thousands in your pocket.
http://www.creditwish.com/debtrelief.htm l

2008-06-14 14:14:35 by bikeguy

www.howtodebtsettlement.com How To Settle Credit Card Debt Yourself www.howtodebtsettlement.com

I want to negotiate directly with the banks, not those debt-consolidators. What kind of forgiveness if any can i expect to receive?

you can always negotiate. just call in and ask to speak with the collections dept about a payment plan. or you can balance transfer your balance to another company with a lower apr. but if you do keep your balance with them call every chance you get for a lower apr. GOOD LUCK!!

2009-04-11 13:56:04 by ronny k

Price: $4.99

I have credit card debt that I have the money to pay off. However, I heard that credit card companies will negotiate a lower amount, say $2,000 instead of $3,000 in order to get the cards paid in full.

1. Is this true?

2. Does this look bad on your credit report? Or does it even appear?

3. How does this work and how do you go about negotiating with them?

Thanks for your time!

1. rarely ... they've heard every possible reason at least sixteen times over

2. yes. it is called a charge off. if you were charged off on one credit card, how many other banks do you think would be interested in giving you another one -- within the next 7 to 10 years??

3. in your case, it likely won't work. you'd have to lie. and since they've heard every excuse and every lie already, you'll probably be detected.

***
just pay up -- honesty has a refreshing quality to it that pays dividends in the long run.

2008-01-04 11:32:43 by PG

Price: $19.95

I've been unemployed for a couple months, and the credit card payments are starting to hurt.

If I negotiate with the credit card company to reduced my debt or monthly payment, will this somehow hurt my credit score.

I plan on refinancing my mortgage when I get another job, and I don't want my score to be hurt.

The credit card company may POSSIBLY be persuaded into reducing the interest rate which, in turn, will reduce the monthly payment, but they arent going to reduce the amount that you truly owe. If you bought a $600 stereo, there is no reason why you should be allowed to negotiate less than that. If you defaulted on your credit card payments and the debts were sold to a collection agency, you can negotiate with THEM for a smaller amount, but the late payments, the referral to a collection agency, and the payment of less than what's owed will ALL hurt your credit significantly. About all you can do without damaging your credit would be to plead with the credit card companies to lower your interest rates. I kind of doubt they will though since they only care about their own financial well-being. If, by some miracle, they DO decide to reduce your interest rates, they may also require you to surrender the credit card. The account, naturally, stays opened until it is paid-off, but you wont be able to further charge anything onto it. If they're going to agree to take less money, they may require a good faith gesture on your part that you wont take advantage of it and charge new things on your lower interest rate card. Thus, they may cancel your charge abilities.

2009-05-13 23:42:43 by Cutman

I got a loan from a bank to pay off my credit cards, but I wonder if I call the companies if they'll let me pay back less than I owe if I try to negotiate.

How should I go about it?

I have one $5,000 balance and two $1,000 balances. I borrowed $7,000 but it sure would be nice to not have to use the entire 7 bills.

Usually they will only negotiate your balance if you are already in collections or at least very seriously past due. It wouldn't hurt to ask and even if they turn you down, look at all the money you will save on the interest (Hopefully you got a better rate from the bank)! After paying them off, you should cut those cards up because it is REALLY easy to charge them right back up. Then you not only have the bank payment, but the credit card payments too! Good luck

2008-05-09 18:25:05 by Johnny F