How to Make a Settlement With a Credit Card Company
Gather financial information, including information about your assets, debts and financial resources., Contact the credit card company and try to convince the company of 3 facts--you can't pay all of your debts; you won't lose a valuable car or a...
Step-by-Step Guide
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Step 1: Gather financial information
If a credit card company thinks it can extract money you owe by liquidating your home or other valuable assets in a bankruptcy, the company may force bankruptcy instead of settling.
Make it clear to the company that you don't have valuable property or possessions to lose if you go into bankruptcy.
The credit card company probably required you to provide your credit report when you applied for the credit card, and the company can check on a current report to see if you are up to date on other credit cards.
If you're up to date on several other cards but not the one you're trying to settle with, you will probably be deemed able to pay and the company won't settle.
The company may look more favorably on settling if it is determined that you are genuinely in serious financial trouble.
Your income and assets may have changed since the company approved your card.
If you request a settlement, the company will likely ask about your current assets and income. , Credit card companies will try to get as much money as they can while making it possible for you to pay off the new balance.
Companies typically seek between 30 and 70 percent of your old balance.
If you can manage to pay 90 percent or more, a company probably won't settle. , Pay the balance in 3 to 9 months if you can, while still retaining enough money to live on.
Keep in mind the company will continue to charge high interest rates on the newly negotiated balance.
If you attempt to stretch out your new payments over a long period, the company may opt to take you to court to get the money. -
Step 2: including information about your assets
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Step 3: debts and financial resources.
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Step 4: Contact the credit card company and try to convince the company of 3 facts--you can't pay all of your debts; you won't lose a valuable car or a home if you're forced into bankruptcy
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Step 5: (which would deprive the company of most of what you owe); and you don't earn enough money to justify a credit card company's attempt to reorganize your debt in a Chapter 13 proceeding.
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Step 6: Negotiate a settlement that allows you to pay off the new balance and live within your means.
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Step 7: Negotiate to pay back the new balance as quickly as possible.
Detailed Guide
If a credit card company thinks it can extract money you owe by liquidating your home or other valuable assets in a bankruptcy, the company may force bankruptcy instead of settling.
Make it clear to the company that you don't have valuable property or possessions to lose if you go into bankruptcy.
The credit card company probably required you to provide your credit report when you applied for the credit card, and the company can check on a current report to see if you are up to date on other credit cards.
If you're up to date on several other cards but not the one you're trying to settle with, you will probably be deemed able to pay and the company won't settle.
The company may look more favorably on settling if it is determined that you are genuinely in serious financial trouble.
Your income and assets may have changed since the company approved your card.
If you request a settlement, the company will likely ask about your current assets and income. , Credit card companies will try to get as much money as they can while making it possible for you to pay off the new balance.
Companies typically seek between 30 and 70 percent of your old balance.
If you can manage to pay 90 percent or more, a company probably won't settle. , Pay the balance in 3 to 9 months if you can, while still retaining enough money to live on.
Keep in mind the company will continue to charge high interest rates on the newly negotiated balance.
If you attempt to stretch out your new payments over a long period, the company may opt to take you to court to get the money.
About the Author
Laura Rodriguez
Experienced content creator specializing in creative arts guides and tutorials.
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