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How can I lower the debt to a CC company?

We have credit card (cc) debt we're ready to pay off in full. The debt is in good standing. We've never been late with monthly payments, and we've always paid more than the minimum. The debt is nowhere near collections. It's just a large sum I want to get rid of now that I have the money to do so. Basically, I want to get the lender to agree to a payoff sum that is lower than what we owe. Any tactics you can recommend?

Answer Question
 
SlightlyPerfect

Asked by SlightlyPerfect at 11:54 AM on Jan. 30, 2011 in Money & Work

Level 10 (473 Credits)
Answers (8)
  • They are not going to lower the balance. A CC company doesn't bargain like that, you either pay it like you agreed or it goes to a collection agency. A collection agency CAN bargain with you but, whatever you don't pay you will get a 1099 for to pay income taxes on.
    matthewscandi

    Answer by matthewscandi at 11:57 AM on Jan. 30, 2011

  • I had some leftover after I divorced my ex. Tell them you don't have it. One of the cards lowered mine from 8K to 2K before I paid it off. They are willing to get some of their money rather than none. You just have to talk to them - be nice and cordial, but firm. I paid off one in full after they lowered the balance, and told a second that I could only afford $25/month. They took that for a while (1 1/2 years) and then eventually just wrote off the rest.
    missanc

    Answer by missanc at 11:58 AM on Jan. 30, 2011

  • you can't get the balance lowered..the only thing you will be saving is interest..unfortunatley CC companies aren't like car dealers who wheel and deal...just pay it off and avoid interest charges and you'll be saving a ton.
    calliesmommie

    Answer by calliesmommie at 12:38 PM on Jan. 30, 2011

  • Anonymous, thanks for playing the role of Captain Obvious, but my goal is to pay less, especially considering the interest rates that keep rising. If they can raise their interest rates at any time on my balance, they can lower them, too.
    SlightlyPerfect

    Comment by SlightlyPerfect (original poster) at 12:46 PM on Jan. 30, 2011

  • The only way to get them to lower the amount you owe is if you stop paying. They'll call, they'll complain, but if you can't pay it you can't pay it.

    After 3 to 6 months you can call them up and ask them to settle. Say you owe $10,000 you can offer them say $7500 as payment in full. Make sure you get it in writing, return receipt requested, no electronic access to your checking account etc. You will have to have the cash to pay your part of it in full.

    The only way I would recommend this is if you honestly can't pay that credit card bill. Yes you did sign up for it, yes it's your debt. But your number 1 priority should be food, lights, and shelter. Not some stupid credit card.

    If they are charging you a lot in interest and/or tons of fees, try transferring the balance to another card. Also keep calling and asking them to lower the interest.

    Good luck!
    Erica_Smerica

    Answer by Erica_Smerica at 3:32 PM on Jan. 30, 2011

  • After 3 to 6 months you can call them up and ask them to settle. Say you owe $10,000 you can offer them say $7500 as payment in full.


    The only way you can do that is if it is in collections.


    Make sure you get it in writing, return receipt requested, no electronic access to your checking account etc. You will have to have the cash to pay your part of it in full.


    Some collection agencies will only agree to settle if they get payment that day.


    matthewscandi

    Answer by matthewscandi at 5:28 PM on Jan. 30, 2011

  • You can't. You owe it, you should pay it.
    Mom2Just1

    Answer by Mom2Just1 at 10:23 AM on Jan. 31, 2011

  • matthewcandi, you can settle a debt without it going into collections. BTW most credit card companies have a collection agency right down the hallway from their billing department.

    You SHOULDN'T give payment that day if it requires you to give your personal credit card information or bank account information. They may push for it, but far too many people have had their checking accounts wiped out when they give their information. And the scary thing is there is nothing you can do about it.

    Think about it- you offer them $1000 they take out $3000. What are you going to do them? You go to the judge, explain the situation and then the judge says, well did you owe that money? You: Yeah.
    Judge- well there you go, you owed the money you paid it. It sucks, but that's life. Collection agencies ONLY job is to get the money. It doesn't matter if you don't have money for food, bounce the rent check, or can't pay your light bill.
    Erica_Smerica

    Answer by Erica_Smerica at 10:29 PM on Jan. 31, 2011

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