Posted on March 30, 2009 at 10:30 am Hi, I have a few cards with large balances and over the past year I have been making the minimum payments and while a bunch of them have been late, none of the accounts have reached collection companies.   I would like to stop making the minimum monthly payments and make lump sum payments to pay off the remaining balances however I don't have all the money needed.  I have read in different places that collections companies would be willing to negotiate for a lump sum payment, but since my accounts have yet to reach the collection companies, I am wondering if the credit card companies themselves would be willing to settle with me in the same manner. Please share your opinions and advice. Thanks

Posted on March 30, 2009 at 2:08 pm From what I have read, I believe the majority of credit card companies will "settle" even if your account has been turned in for collections, because they want to collect "something" which is better than "nothing."  Just beware though that if you do decide to "settle" your debt with one of your collectors, your credit report will read "settled" which means that you settled for less than the amount you owed, so it can still have a negative impact on your credit report.

Posted on March 30, 2009 at 9:20 pm Thanks for the reply buggles, but in my situation the collection companies are not involved yet and I am wondering if the credit card companies themselves would be willing to negotiate and settle with me for less for a lump sum payment at this point or do i need to let the account(s) get delinquent and reach the collection companies before they would be willing to negotiate with me? Thanks

Posted on April 2, 2009 at 4:12 am Heres the deal with collection agencies,when they take over if its a third party they buy your note,for about 0.5 to .10 cents on the dollar.  But they are hungry you are better off settling with the credit card companies your self .Do you mind if I ask you what your Credit score is and how late you are? And that is not always true about your accounts reading settled!  I have done account that say payment in full. One more question do you have the money in hand to pay at the most 50% if so and its not one of these forever payment things.  You can Private messege ,me but when its all said and done all I ask you refer me because alot of us get a bad name.  I got in this to help people. God Bless Rick

Posted on April 4, 2009 at 1:51 pm Credit card companies will usually settle accounts for about 70-75% of the balance. They are willing to work with you, but it's important to get everything in writing. Make an offer in writing to them (certified mail return receipt) through the Post Office. If they refuse or ignore the offer, you should try and make larger payments than the minimum. Eventually the balance will start to decrease which could put you in a position later on, to make a one lump sum offer. Start paying off balances with higher interests first, and go from there.

Posted on April 4, 2009 at 1:56 pm i heard that right now in the states, credit card companies prefer to settle delinquent accounts and closed it since unpaid accounts toll up and worsen their situation...

Posted on April 5, 2009 at 8:06 am I think they will offer you an agreement to pay the initial amount and less the interest.

Posted on April 10, 2009 at 3:18 am Thanks for the reply buggles, but in my situation the collection companies are not involved yet and I am wondering if the credit card companies themselves would be willing to negotiate and settle with me for less for a lump sum payment at this point or do i need to let the account(s) get delinquent and reach the collection companies before they would be willing to negotiate with me?Thanks

Posted on September 28, 2009 at 4:47 pm I just tried to negotiate a settlement with 6 different credit card companies and they all stated they no longer do settlements.  All they want to do is raise your rates and keep you in debt forever.