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How do you ask for a settlement on a credit card debt?

My DH and I owe about $3,000 on a credit card. We started to get behind on payments in November when his hours at work got cut. We will only be getting back about $2,000 from taxes and would like to pay off the credit card before it destroys our credit anymore. Should we ask them if they will make a settlement with us so that we can just pay it off? How do you go about asking them something like this?

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Anonymous

Asked by Anonymous at 12:52 AM on Feb. 2, 2009 in Money & Work

Answers (3)
  • A settlement could do more damage to your credit than paying it down and then making continuing payments, so see what you can negotiate with them.

    The banks are really hurting and they are willing to negotiate, so you might be able to work something to improve your credit rating.
    gdiamante

    Answer by gdiamante at 12:57 AM on Feb. 2, 2009

  • If you are late on your payments, they may indeed be willing to settle. I saw a great article on eHow. http://www.ehow.com/how_2076712_settle-credit-card-debt.html. Also, the collection industry is full of freaks. Clark Howard had on this great guest back in October. who told him about the collection industry and how they are thieves. They do this stuff like pretending to take information from you, or looking at your record then spewing out a made-up quote: "Well, based on the financial info you gave me, my computer tells me you should be able to pay 77 cents on the dollar." It is all made up! They are basically crooks out to get every cent you have.
    Trixiebelle2

    Answer by Trixiebelle2 at 1:12 AM on Feb. 2, 2009

  • i just ran into the same thing.. try your local credit union - they can loan you the money to pay off the credit card at a much lower interest... i just got my loan to payoff my 2300 cc debt . the interest through the credit union is only 3.75% as opposed to the credit card interest which is 21% !!!
    the banks can do it too but credit unions are a better deal if you can find a way to become a member.
    Anonymous

    Answer by Anonymous at 10:46 AM on Feb. 2, 2009

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