Is it possible to negotiate w a CC company to pay off a balance?

[KaBudokan]

I know that the debt relief companies always say that they will negotiate with the credit card companies to reduce your balance if you pay it in full (or they will pay it and charge you a fee, etc.). I'm wondering if it's possible to do on your own, even though you have a good payment record, etc.

For example - if I have a $15,000 balance on a card, is it possible to negotiate with the company to accept a $12,000 lump sum payment to settle the entire balance at once?

I've heard of people doing similar things, but I can't see how it would be in the CC company's interest to settle like that.

Any experiences or thoughts on this?

Thanks!

 

[bsobel]

Most companies won't talkt to you about it unless you're filing bankruptcy or in a formal credit management program.

 

[bctbct]

If you manage to settle the debt for less they will most likely send you a w-4 for the difference.

On that note, pay what you owe.

edit I meant 1099 not a w-4

 

[intogamer]

I believe you can. Wouldn't they rather have you pay some money rather that none.

 

[mrrman]

I doubt it...the only way to get a reduction is through bankruptcy...why would they take less ...if you default then thats when they suspend your card, send you letters and then off to collections

 

[intogamer]

Originally posted by: mrrman
I doubt it...the only way to get a reduction is through bankruptcy...why would they take less ...if you default then thats when they suspend your card, send you letters and then off to collections

Not any less. Probably lower your current interest rate or something.

 

[Gooberlx2]

We've done it a couple times. Just threaten that you're going to either file bankrupcy or transfer the balance because your payments are too high and you can't keep up. Once with MBNA, who deactivated the card and dropped the rate to 2% (threatened bankruptcy...which was true), and Chase who deactivated the card and dropped the rate to 9% (threatened to transfer balance).

 

[Gooberlx2]

Originally posted by: mrrman
I doubt it...the only way to get a reduction is through bankruptcy...why would they take less ...if you default then thats when they suspend your card, send you letters and then off to collections

And then you do file bankruptcy 'cause you figure "fuck it, they just screwed my credit anyway" and they don't get jack. The CC companies aren't too stupid to at least try to prevent a loss.

 

[spidey07]

Originally posted by: Gooberlx2

Originally posted by: mrrman
I doubt it...the only way to get a reduction is through bankruptcy...why would they take less ...if you default then thats when they suspend your card, send you letters and then off to collections

And then you do file bankruptcy 'cause you figure "fuck it, they just screwed my credit anyway" and they don't get jack. The CC companies aren't too stupid to at least try to prevent a loss.

And your credit report will get killed because you did not pay as agreed.

 

[alkemyst]

The interest rate is built in a way to cover the losses. They usually don't reduce a balance for anyone but an agency which usually approaches them with several accounts at once.

They will usually lower your rate if you been paying on time. The most I have been lowered at one time was 7% for a card I got in college while not working.

If you do ever get a short fall, the IRS considers that a gain. You'd have to pay tax on it no matter if they sent you a 1099 or not technically.

Also in a bankruptcy you usually cannot just walk away from all debt. There are ways to do so though.

 

[Gooberlx2]

Originally posted by: spidey07

Originally posted by: Gooberlx2

Originally posted by: mrrman
I doubt it...the only way to get a reduction is through bankruptcy...why would they take less ...if you default then thats when they suspend your card, send you letters and then off to collections

And then you do file bankruptcy 'cause you figure "fuck it, they just screwed my credit anyway" and they don't get jack. The CC companies aren't too stupid to at least try to prevent a loss.

And your credit report will get killed because you did not pay as agreed.

Well, if you default and they've sent you to collections, your credit is going to be pretty well screwed for a good while anyway (though not un-recoverable).

In any case, if you're faced with choosing shitty credit for 7-or-whatever years due to bankruptcy or missing mortgage payments and losing your house....well I'd give the big finger to the CC company.

 

[nick1985]

Call CashCall

 

[Casawi]

They will only try to settle with you when they are about to send it to collection or already in collection. My now the interests and fees piled up on the CC is massive with Interest!! They will basically waive the interest and fees on the balance and maybe a small % of what you really owed.
After college I settled for 80% on one, and one of my roommates settled for 50% ! But At the end I still paid what I barrow

 

[CTrain]

If you're in good standing, h3ll no. Why should they ??
But if you've been defaulting payments for a while, then yes.
I settled with MBNA a long time ago when I was in college.
They did something to piss me off and they didn't make payments for like 4 months.
Once they got a hold of me, we worked it out and they deactivated my card.

 

[imported_griffis]

My wife has done this before actually, but I dont recommend it. This hurts your credit as it shows you are unable to pay your debts.

 

[KaBudokan]

Well, it was just a thought... lol

I did figure that it wouldn't be possible if I was in good standing, which I am. I have very good credit, but just have a bunch of debt hanging over me, so I've been working on paying it down. I wouldn't want to mess up my credit rating by stopping payments with the idea of possibly negotiating a deal in the future.

Now... where did I leave my lottery ticket?

 

[dirtboy]

If you have 12,000 of a 15,000 debt, put the 12k down and finish off the 3k later.

 

[Turin39789]

I stopped paying for a year, would pay a few dollars off and on, probably doubled my balance with interest, and eventually they offered to settle and knock a grand off the top.

Weeeeeee!

Just got my first credit card after going a few years without!

 

[Injury]

Yeah... if you're going to offer up $12k, something tells me that they won't believe you can't cover the remaining $3k.

 

[RichardE]

I did it for a debt of 10000. I lost the card obviously after, I paid them a lump sum of 6500. If its the credit card company directly it might be difficult, I've also done it with collection agencies who can go as low as 50% of the debt and they still make a profit.