Debt Negotiation Advice

Should I try to negotiate my credit card debt down before paying it off?

I got a loan from a bank to pay off my credit cards, but I wonder if I call the companies if they'll let me pay back less than I owe if I try to negotiate. How should I go about it? I have one $5,000 balance and two $1,000 balances. I borrowed $7,000 but it sure would be nice to not have to use the entire 7 bills.

Public Comments

1. I tried with Bank of America and they are jerks.... Try to first. That is what those credit card counseling services do. If you stay persistent you may get them to drop the rate. I ended up refinancing and vowing to never use credit cards again.....oops
2. Negotiation can be done easily when your way over do. It might be harder if your not that far behind. Just don't deal with anyone but the supervisor and have him send you a settlement offer in the mail before you give them any money.
3. YES!! It can reduce your debt substantially if you can offer a complete payoff. If you are refused, you will not have lost anything.
4. YES.... I had the same problem, got those stupid cards. Call the company and tell them that you would like to pay your debt, and if there is a settlement amount. Depending on how overdue these are then there should be a settlement amount. If these are like a few months of charges then just ask. "Is there a way to get the balances lowered if I am to pay today (or send in the mail, or whatever you are doing) " ? It never hurts to ask. The worst that could happen would be that they tell you no and you already have the money to pay it off. Go for it!
5. Usually they will only negotiate your balance if you are already in collections or at least very seriously past due. It wouldn't hurt to ask and even if they turn you down, look at all the money you will save on the interest (Hopefully you got a better rate from the bank)! After paying them off, you should cut those cards up because it is REALLY easy to charge them right back up. Then you not only have the bank payment, but the credit card payments too! Good luck
6. I would think it is worth a shot, don't tell the credit card people that you have the money to pay it off or they won't do a thing for you. If they offer to up your limits say NO. Good luck.
7. Why should they?
8. Unless your accounts are severely behind, they will more than like not negotiate with you on the price.
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