How do I negotiate a the best payoff of a credit card?

Question

I have some capital 1 credit cards that are in collection and I am ready to negotiate a settlement. Are there ways to get the best percentage or do the collection agencies have a bottom line they will not pass?

The cards are delinquent over 4 years and have been sold to a collection agency.

Answer 1

Good luck...capital one is the most horrible company...

Answer 2

Wow; a lot of wrong answers on here again. The only thing I saw that I liked was the bit about hiring a 3rd party to do it for you. Here is the down low: Capital One will be hit or miss because they farm the accounts out in so many different directions. What you have working in your favor is the fact that they actually sold the account to the agency if that is the case. If it is within a year of chargeoff, they usually start talking 70 or 80 percent. Really what you need to do is talk 40 or 50 percent, stick to your guns and be willing to wait until they sell it to another agency if they don't accept your terms. Know that you will get a 1099 and pay tax if you save more than 600 dollars.

Answer 3

Unless you know what you are doing, I would probably hire a credit counseling service to do the negotiation for you. You have to be at least 30 days delinquent, and they will close your accounts, but negotiate a lower montly rate and get you back on your feet over time.

Capital One, Providian, Orchard Bank and Household Bank will rarely negotiate because they take chances on higher risk customers. The way they stay in business is through higher interest rates charged to those who pay on their accounts and they didn't get to be one of the biggest credit card issuers by giving away lower rates.

Capital One is notorious for reporting incorrectly to the credit reporting agencies to keep you as a customer; if they wreck your credit score you're less like to secure credit through someone else, hence keeping your Capital One account and using it.

Answer 4

With most settlements you do need pay off the each individual credit card debt all at once in a lump sum by paying the creditor the reduced debt settlement figure they have agreed to with your debt negotiation firm. There are two significant exceptions that debtors should be aware of. First is that in some cases the creditors will arrange a short payment plan, especially with larger amounts of credit card debt. These plans might range any where from three to six months to pay off the credit card debt. The other exception comes in the form of special debt management or debt reduction companies, which arrange to stretch debt settlement plans out of a period of one to four years.
Debt negotiation firms who work with secured debt such as mortgages and car loans do exist but most often are not the same firms who specialize in credit card debt.

get more information about credit card at: http://www.card-gallery.com/index.html

Answer 5

Just remember, if you negotiate a payoff settlement on a debt, you will have to declare the write off amount on your taxes next year!

Most unsecured debt companies will go as low as 60 cents on the dollar. So if you owe $5,000 they probably won't take less than $3,000 for the payoff.

Answer 6

my sister had a bad experience with Capital 1 they would not work with the credit counciling service that helped her get her debts paid off . . instead she contacted Capital 1 directly and they allowed her to make payments to them but would not budge on the interrest rate.

Answer 7

Usually a bottom line but that would be a lump sum usually

Answer 8

Tell them to "Guess What's In My Wallet?", then when they laugh, tell them "Nothing!"...then ask "How much will you take to settle?"