Can I negotiate my credit card balance if I offer to pay a lump sum?
by Author on Sunday, July 11th, 2010 | 5 Comments
We refinanced and took cash out so we can pay off our credit cards. My question is if we contact the credit card companies, will they reduce the amount owed if we offer to pay them a lump sum in order to pay it off? Has anyone done this? Is it possible? Thank you.
Related Credit Card Sites
- Credit Cards After Bankruptcy | The Bankruptcy Blog
- Small Business Financing Credit Cards: Important Information and the Rule of Four | Opening A Small Business
- Get A Lump Sum Payment Of Cash For Annuity Payments
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they may negotiate the interest portion of the balance you owe. But- not likely… They would prefer that you just keep your money and make the minimum payment each month for the rest of your life. What incentive do they get by taking less than the balance? They don’t want you to pay the account off. They gave you the account in the first place so that you would use it, keep a balance on it so they can charge you interest. Why not just negotiate a lower interest rate. If they say no to that, tell them you will be shopping for a lower interest card & do it & close your account.
The only situation that I know where they will eagerly negotiate and accept less than you owe is if you are in default on your account already. They will then be more likely to take what they can get now instead of spending the money to try and go after you via collection agencies or court. Since you just refi’d your house I am assuming your credit accounts are in good standing though & probably doesn’t apply to your situation.
No.
What will you lose by calling them up and making an offer. The worst they can say is "no."
they should. they may even lower the interest rate.
Absolutely YES. What do you think all those credit counseling places do? They lessen your payments by negotiating for a reduced lump sum payment, then you pay them a healthy margin of profit for something you could have done yourself. If you cc balance gets written off to a collection agency, call the cc people and ask them what they sold your balance for. Usually it is anywhere from 10 cents on the dollar up to 40 cents on the dollar. then call the collection agency and offer them a 25% premium over what they paid. You can do it!