6 Tips for Negotiating Credit Card Debt

Is your credit card debt overwhelming? Have you considered negotiating credit card debt yourself, but don't know how or where to begin? If you are finding it difficult to make even the minimum monthly payments, then credit card debt settlement may be a good option.

However, if you want to settle your debts with the help of a debt settlement company, it can turn out to be expensive. If you're not prudent while handling your debts, you can end up with more debts instead of settling them.

You have to know the ways of negotiating credit card debt properly if you want to get rid of your debts. The following tips will help:

  1. Talk to the billing department of your credit card company and ask them about settling your debt. If there are any changes in your financial situation recently it can be difficult to pay off the balance. If the representative you are consulting does not offer any appropriate solutions, talk to someone else who can help you in a better way. 

  2. If you think debt settlement will not solve your financial crisis, convey to your creditors that there is a possibility of bankruptcy filing. Depending on the type of bankruptcy you file, your debts may be discharged. If such a situation occurs, your credit card company will not receive any payment at all for the debt. It is generally the case that your creditors would rather settle a debt than lose the whole of it through bankruptcy filing. 

  3. Request the removal of any late-payment notations that the credit card company has placed on your credit file as part of your settlement agreement. You have to keep in mind that the settlement negotiations can include all the aspects of the debt, not just the balance and interest rate. The settled balance also needs to be reported to the credit bureaus as "paid" instead of "settled". It will help in improving your credit score. 

  4. Ask the credit card company not to sell the remaining balance of the debt to a collection agency after the settlement is paid. Selling the balance will negatively affect all the efforts you put in reducing your debts. This will also negatively damage your credit score. 

  5. Do not believe in verbal settlement deals. Get everything in in the form of a written agreement duly signed. If any mistakes are there on your credit report or the credit card company does not abide by the terms of the agreement, always have written proof of the settlement terms. If you do not have the terms clearly mentioned in your agreement, you are likely to face problems while dealing with your credit card company. 

  6. If you can afford it, try offering a lump sum payment as the settlement amount. It is generally the case that consumers who are opting for a settlement are usually financially weak and are at a much greater risk. If you can offer a lump sum payment it will ensure a successful settlement of your credit card debts. 

This is a guest post by Marc Brown, a financial writer who is associated with Oak View Law Group. He also maintains some quality blogs & web sites.


Negotiating credit card debt is just one way of handling unsecured debts that become overwhelming. The following can help you get control of your debt situation:

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