Did you hear about debt settlement and want to try to negotiate a credit card debt with your credit company? Do you keep asking yourself “Will credit card companies settle for less than owed?” or is this something not really attainable? Here we will try to answer these questions for you and will even give you tips for
Will credit card companies take less than owed?
You probably didn’t know this, but many credit card companies sell a bundle of debts to debt collectors for practically a penny. If you are getting regular calls from collector agencies, then it is very likely that your debt was one of them.
Collector agencies are more willing to take less than you owe because they will still be able to earn something on your debt since they originally got it for symbolic price. But will credit card companies settle for less? If they will have a good reason to believe that you will be unable to pay the debt and they might jump at a chance to get at least something from you.
How to get credit card companies to settle for less
Do you want to know how to convince debt collectors or your credit company to settle for less? We are sure you do. Here are some effective tactics you can try:
- Do not tell the them how much you are willing to pay and instead ask them how much they are willing to settle for. You might be pleasantly surprised that they offer to settle for much less than you expected. If this is not the case (and usually the first number they say might be somewhat higher than you would desire), you will still have a starting point for your negotiation and can go from there.
- Annoy them by calling every day and asking if they are willing to settle for less than you owe and even propose some number. Remember that consistency and persistence are import in this case. After some time (and this can be months), they will get tired of you calling them every day and will agree to whatever you say.
- A little white lie might save you a lot. Here, you can either say that you talked to one of the representatives earlier and was told that your debt can be settled for a specific amount. In this case, there’s big likelihood that a person will just double check with management if they can go this low and it will be your lucky day.
You might also trick them into thinking that this is their only chance at getting at least something back. Here, you can say that someone is willing to pay a part of the debt on your behalf right now and ask them if they will take less than your outstanding balance.
- Instead of asking for a debt settlement, you can just inquire if they offer a discount to people who pay the remaining debt in a lump sum. Remember, your goal is to pay less and if you can get a good discount for paying the whole sum at once, the end result will be the same.
Debt settlements of several debts at once
Before torturing yourself with a question such as “Will credit companies settle for less if I have several debts?”, you need to ask yourself if you will be able to pay the amount you settle for to all the creditors immediately. If you do not have this money and cannot take a debt settlement loan, then there is no point in even starting the negotiation.
If you were able to collect a sum or take a loan that you believe the credit card companies will agree to, then settlement of multiple debts is actually recommended when other options, such as debt management, are not suitable. However, settling multiple debts on your own can be complicated and not very effective, so it is best to turn to reputable debt settlement agencies who can help you with the whole process.
Get experienced help
If you are not confident in your abilities in convincing the creditors to take less, than it is best to turn to experienced professionals, who not only know what to say and do to obtain you the best arrangement on the debt settlement, but also have good relationships with many creditors. You might also not be aware of some facts that can play against your debt collectors.
Debt counselors will contact all the parties involved on your behalf and no one will bother you with calls at the most inconvenient time and annoy and stress you with statements such “Your debt has to be covered this moment or else…”. They might also get creditors to report the settled debt in a way that will not negatively affect your credit history. Reputable debt counselors also will not charge anything before they work out a good settlement for you and will act in the best interest of their client.