How to Negotiate a Charge Card Debt Downward
A charge card works similar to a credit card except it generally does not have a set credit limit and requires the card user to pay the balance in full at the end of the month. There isn't a minimum payment on the account; the balance represents the required payment. Some charge card issuers, like American Express, have certain cards that allow the cardholder to revolve a portion of the balance. This balance will accrue interest. If you are unable to pay the balance on a charge card, it isn't necessary to hire anyone to settle the debt for you. You can negotiate a settlement with the card issuer on your own.
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Instructions
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1
Read over your billing statements from the card issuer. Add up the total amount owed on the bill, including late fees, accrued interest, if applicable, and any other miscellaneous fees.
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Calculate how much you can afford to pay toward the balance due. This will be the highest dollar amount you can pay at this time and will serve as the ceiling for your offer to the card issuer.
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Call the card issuer. Since first-line customer service representatives may not have the authority to negotiate payoffs, ask to speak with a person of authority, such as a manager.
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Inform the manager that your goal is to settle the debt and not simply to make a payment toward the balance, and that the purpose of your call is to negotiate a settlement.
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Offer an amount far lower than the dollar amount that you can afford. If you owe $5,000 on the charge card, offer $1,000. Your goal is to leave room to negotiate if the manager refuses your initial offer and instead, makes a counteroffer.
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Request that the card issuer send the agreement to you in writing once an agreement on the payoff amount is reached. Do not make a payment of any kind before receiving the written agreement.
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Mail the payment in the agreed-upon amount once you receive the written agreement. Send the letter certified mail, return receipt requested so that you have proof of delivery. Include a copy of the agreement along with your payment.
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Tips & Warnings
Creditors are not obligated to settle a debt. According to the Federal Trade Commission, the creditor does so at its own discretion and may require you to pay the total amount in full.
The card issuer may decide to close the charge card account if you pay less than the amount owed on the bill, especially if you're delinquent on the payments.
