How to Cancel a Credit Card Debt
If your credit card debt has risen to overwhelming levels, it might be time to seek relief from an unlikely source: the issuer of your credit cards. If you can no longer afford to make your minimum monthly payments, ask your credit card companies to cancel all or part of your debt. To succeed in this, though, you'll have to prove to your card issuers that you have suffered a financial hardship that makes paying your revolving debt impossible.
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Things You'll Need
- Copy of most recent federal income tax return
- Copy of savings and checking account statements
- Copies of most recent credit card statements
- Copies of other loan statements, such as student, mortgage or car
- Copies of two most recent paychecks
Instructions
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1
Make copies of the financial statements that you'll use to prove to your card issuers that you no longer make enough money each month to pay your required monthly minimum credit card payments. These papers include your most recent federal income tax return, last two paychecks, savings and checking account statements, credit card bills and other loan statements.
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2
Call your credit card issuer and explain that you have suffered a serious financial setback that has made it impossible for you to pay your minimum credit card payments each month. A setback could be anything from a job loss to a reduction in annual income to a serious injury that prevented you from working. Ask an account executive at your credit card company if the company can cancel all or part of your debt.
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3
Write a financial hardship letter that puts into writing the reason why you can't pay your credit card debt. Also include your request that your credit debt be either canceled or reduced.
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4
Send your hardship letter and the copies you made in Step 1 to your card issuer. Your credit card company will study these documents to determine if you truly can't afford your minimum monthly payments.
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5
Agree to a remedy if your card issuer approves your request to cancel or reduce your credit card debt. Unless your financial situation is extremely dire, your card issuer probably won't cancel all of your debt. However, your issuer might decide to cancel part of it. This might lower your monthly required payment enough so that you can afford it.
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Tips & Warnings
Don't be embarrassed to call your credit card company. It is in the card issuer's best interests to work out a solution with you. Remember, your card issuer won't get any money if you have to declare bankruptcy to wipe out your debts. Your issuer, then, should be motivated to work out a solution that at least guarantees that you'll pay some money each month.
References
- Photo Credit credit card image by jimcox40 from Fotolia.com
