I will be paying off a large amount of credit card debt with a loan I received. Has anyone ever had any luck with asking the credit card company to agree to a "pay-off amount" that is lower then the card's current balance? We have been making the minimum payments on the cards so we are not accumulating late fees or appearing as a risk to default. The cards all have balances around $3,000.
2007-07-26 10:26:39 · 2 answers · asked by NickG 3 in Business & Finance ➔ Personal Finance
The only time ANY creditor will agree to settle for less than the full amount is if they have reason to believe they can't collect. Unless you have been i default for some time, they have no reason to believe that.
NOTE: There is no such thing as paying off debt with MORE DEBT (you called it a loan). You simply changed the name of your creditor.
2007-07-26 13:44:23 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
It doesn't hurt to ask, and it has been known to work, if your request is reasonable. You have to show the company you are making a good-faith effort to pay back the money.
Call the American Consumer Counseling Center - unlike a lot of those "debt solution" places, this is a non-profit and won't take your money. They can give you some great counseling and advise you on the best options for your particular situation.
American Consumer Counseling Center
http://www.consumercredit.com/ or 1-800-769-3571
2007-07-26 10:44:40 · answer #2 · answered by teresathegreat 7 · 0⤊ 1⤋