Negotiating Credit Card Debt

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

www.debtopedia.com - Learn how you can negotiate with your credit card company to save money on your payments - and pay off your credit cards faster.

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

Price: $4.99

I was going to hire a debt settlement company at a cost to me of many thousands of dollars to me AND no guarantee that they would do what i am paying them to do. So i decided, what the heck, why not self-negotiate with my creditors?

It is better to seek help from any reputed debt settlement company. Such companies can handle it properly as they are experts in that field. I took help of freedom debt relief to negotiate with my creditors. I have joined their debt reduction program one year back and almost debt free now.

2009-05-12 20:46:31 by gotmini02

Price: $14.79

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

We are trying to negociate 50,000 credit card down to 25,000. Is it true that you need to pay taxes on the amount settled to the IRS. See post below:


"Do you have the settlement amount in full? When you try to negotiate settlements, often times you need to have enough
funds to make large payments. Additionally, be aware that any "forgiven" debt by the OC is considered taxable income by the IRS"

The IRS has just issued a new publication 4681 to cover this issue.

2008-06-13 14:59:32 by WM