I’m hosting a “Virtual Roundtable” on How to Negotiate With Credit Card Companies, and I need your input! This information will help others that are going through the same thing.
For those who haven’t attempted to negotiate their debt yet, but have questions – Submit your questions in the comment section below.
For those that have negotiated your credit card debt, we need your input! - Simply call (310) 929-0033 and leave a message with your answers to the following questions. We will take your message, type it out, and post it on our blog with ONLY your first name. Once again, the questions are:
- Name of credit card company you were negotiating with
- Amount of debt
- Amount settled for
- What did the credit card company offer you that was “out of the ordinary” (for example, no payments, no marks on your credit)
- How did you negotiate this?
- What are the things you would definitely do again?
- What are the things you would do differently?
Click “Call Me” below , enter your first name and your phone number and the system will immediately call you and connect you to the voicemail system:
Remember the more specific the better. If you know someone that does know how to negotiate with credit card companies, please click on “share this” so that we can spread this information!
Thank You!
Hello, I don’t know if you can help me but it’s worth a shot. I am currently negociating my cc debt with Chase bank. I’m about 5 months behind on my payments and owe about $8,000. At two months behind I called and was offered a 50% settlement. I figured if they started at 50% I had a real good chance to get an even better settelment. Now I’m 5 months behind and they a not budging on the 50%. I don’t know if I should continue to try or just accept the 50%. What would you recomend I do to get a better rate? Is there anything I can do? In your experience is this typical? Any bit of info would be greatly appricated! Thank you in advance.
At what point after stopping payments to cr card companies should I try to start negotiations?
I am very interested in the virtual roundtable “How to Negotiate with Credit Card Companies”, please advise when this will start.
Thanks
I had to call my CC co.(Chase Bank) and tell them I could not pay on my credit card debt (in Oct. 2009). Was transferred to a lady who asked questions, which I answered,and she set me up with a pay’t of 1/2 of the min. Two days later I was phoned by another person who wanted $100 more and didn’t accept my reason my reason for non-payment. I asked if he understood plain english and he hummed & hawed and finally hung up.this was followed by other persons, as many as one a day for a week and then one every 2 days. I finally said I can’t pay you ’cause I didn’t have the money. As of now I think I’m in collections because the letters and phone calls have stopped and I refuse to talk to the collections people.I’d like to be able to pay these people but the $$$ is not there. I got very sick due to paying the Cr Cd instead of buying food and decided I needed to get well before I could handle this. is there a way to negotiate even tho’ I’m in collections?
I was wondering where the $150,000 negotiation story is? I am very anxious to read it. My credit card debt came from $12,000 in medical bills and then the interest snowballed me into $19,000. The stress of this debt the last six years is taking its toll.
I have credit card problems, but they are excerbated by student loans. Is there any help with those? They seem to be a run-away train with all the interest compiling…thanks
To Philip Tirone,
Could I talk to you via telephone, please send me your phone number and best time to call you.
Thank you,
Irene
Irene – please go to the “Contact Me” page at the top of this web page, and I will get your private correspondence. I look forward to connecting.
I have an account with Chase that I’m trying to negotiate settlement for $1,000 from the actual amount of $6,000. I just recently went back to work after being unemployed for several months, and now I’m in a position to negotiate a settlement with them. They have since charged off this account and turned this matter over to a law firm to collect. The law firm they turned this over to hired a local law firm here in Kansas City, MO to handle the collection process. The local law firm has consistently lied to me about the original law firm refusing to accept my settlement offer, when in fact I found out from talking to someone at the original law firm that they never received my $1,000 settlement offer from the local law firm. Now I have to totally bypass the local law firm and try to negotiate a settlement with the original law firm. What’s the best tactic to use to negotiate a successful settlement with the original law firm? Thanks so much for your help.
As an attorney who helps with debt negotiation, sort of a “done for you”, you can significantly reduce your credit card debt.
Here are some steps:
1. You must stop paying your credit card bill. There is a six month period after which the company is required by law to write off your debt. That means total loss on their books (but you are still liable). They then either try to collect or sell for pennies on the dollar to collection companies.
2. About month four, the negotiations begin. The best discounts are for lump sum. Still good discounts with payouts as long as eight months.
3. Settlements depend on the company. Citi will go down as far as 25%, as will several others. B of A, Chase, and a few others will not go below 50% normally.
4. Hardship is a key word and will get their attention if you really have health problems, death in the family, etc.
5. They hate people who just stop paying and intentionally default.
6. Be prepared with a Chapter 7 or Chapter 13 as a last resort. Having your bankruptcy lawyer negotiate is a big help.
7. Yes, your credit score will take a hit but as Phillip teaches you can fix that fairly fast (even with a bankruptcy on the record).
There are other discussions on my newsletter, The Montgomery Letter, at jamesmontgomerylaw.com.
Phillip, excellent program. I recommend it to my customers because fixing the debt only begins the process to fixing their credit.
[...] week, I posted information about a “Virtual Roundtable” I am hosting on How to Negotiate With Credit Card Companies. From all the responses I received, there was one in particular I felt needed to be shared with [...]
Stay Tuned! I got a call from a someone that negotiated $150,000 in credit card debt, for less than 25%! I recorded the entire call and will be posting it next week.
This information is GOLD!!!! Literally, amazing information, from the lies they told him, to the actual results.
All credit card companies will be name!
I have a credit card that has not renewed my account due to a current loan mod I’m dealing with which is supposed to be done by March. So, because they’ve closed my acct., I’d like to negotiate the balance & pay it off. Where do I start? 50%, 70%??? Thanks!
Most of the credit card companies that I deal with will not negotiate. I forgot to make a payment on the due date and one of the company’s raised my interest rate because I was a few days late. They did not do anything for me. I am currently working with a debt management company because three of the companies would not work with me…They are a rip-off and making out like a bandit!!!!!!!
The only involvement I have with credit card companies is the removal of disputed charges. I found
that credit cards which are issued through normal banking relationships are generally more helpful
in going to bat for the cardholder. Specifically banks seem to more interested in preserving their relationship
with good clients than the multitude of vendors they serve and extract transaction fees. In case in point WellsFargo cardholder enjoy very good card support. I also find them willing to waive late charges if they feel
that aren’t being “gamed”.
I am a mortgage broker and I have seen in credit reports that people can be authorized users of a credit card but they are not the principals ones. If the principal person have some late payments does it affects the other that is only authorize to use it?
Thanks Jose – If a person is an Authorized User on a Credit Card, their credit will be affected. If this is the case – have your clients contact the credit card company and remove them as an Authorized User, and their credit will jump higher immediately.
I work for a debt settlement company. From what I understand, credit card companies will not settle credit card debt unless you are behind on your cc. If you are behind, the best they will do is 70%-80% and you usually have to pay in one lump sum. If you cannot pay your cc, the best thing to do is wait until the company charges off the debt and sends it to collections. You can negotiate with the collection company at about 30%-50% depending on the cc and the age of the debt. There is a chance you could be sued, although not everyone gets sued, and I’m not sure what criteria the cc company uses to decide. Also, if you negotiate with the original creditor, you will get a 1099 at the end of the year for the forgiven debt, less likely with a collection agency. They will report the debt as “settled for less than full balance” usually. We’ve been able to negotiate to get it reported as “paid in full.” Still, it does have a negative effect on your credit score, but you will recover if you are a “good citizen” for a couple of years. If you are in cc debt over your head and/or you have fallen behind on your payments, IMO the last thing you should be worried about is your credit score!
This is Great Karen! Thanks! Per this post on How to Negotiate with Credit Card Companies:
What works:
- You need to be behind on your payments for credit card companies to negotiate with you.
- The best they will do is 70-80%, and this needs to be paid in a lump sum (no payments) (See my thoughts below)
- If you cannot pay the credit card in lump sum, it is better to have the credit card companies charge off the debt and sends it to collections.
- Negotiation with the collection company is 30-50%, depending on the credit card and age. (See my thoughts below)
- There is a chance you will be sued (see my thoughts below)
- You will receive a 1099 a the end of the year for “forgiven debt.” This is more likely when negotiating with a credit card company vs. a collection company.
- It is possible to negotiate with a credit card company to have them report to the credit bureaus – “paid in full.” (See my thoughts below)
Here are some of my thoughts:
- I’ve had clients that have negotiated directly with a credit card company have have negotiated for 30% off. That might mean what Karen means, but just wanted to be clear.
- Negotiating with a collection company is an art, and this is what we talk about in Step 6 of my book “7 Steps to a 720 Credit Score.” If you can, negotiate for a “Letter of Deletion” when you pay off the collection. Not all will give you this letter, but that is where you want to start. I’ve had client negotiate 10% of the original balance, depending on the age of the account and if they get a letter or now.
- From my experience, any balance under $2500 will not be sued. Balances over that have a much better chance.
- Karen’s point about negotiate a “paid in full” reporting to the credit bureaus is a great point! I’ve see this happen, not often, but have seen this happen!
Regarding your credit, Karen’s right, first a person needs to deal with their finances, then deal with their credit. Your credit will be EASY to fix, as long as you follow the right steps to reestablish your credit. We talk about this on our tele-seminars – which anyone is welcome to attend.
how do you negotiate with your credit card company.
2. is it good to consolodate
3. how does consolodation affect your credit or report
4. how does settlement affect your credit report
Nurat – these are great questions, and this is why we have our tele-seminar, so we can teach this to many. Email Natalie Sanchez @ Natalie@themeg.net for free access.
I have $3000 in debt with American Express ,and I call and said they I pay off all this in one lum sum if they would reduce it and they said it is for a person that does not pay on time
Jackie – see Karen’s post above, I believe this will answer your questions.
I HAVE NOT NEGOTIATED BUT WHAT IS THIS DEBT SETTLEMENT ? ONCE SETTLED IT WONT AFFECT YOUR CREDIT,& HOW TO ADD TO IT HIGH INTREST DEBTS.hOW WILL THAT AFFECT.
ALSO IF A COMPANY ASKS YOU WILL NEED AN ACCOUTANT SINCE YOU ARE IN BUISNESS & IT WILL COST YOU 2025 DOLLARS & YOUR BUISNESS IS NOT MAKING ANY MONEY & YOU CANCEL IT .WHEN EVER YOU CALL THE PERSON IS NOT THERE & DOES NOT RESPOND TO MESSAGES .HOW YOU GET YOUR MONEY BACK.
Lalta – I cannot answer your question about your “getting your money back question,” as I don’t understand the situation.
Credit Card negotiation is about settling your credit debt for a lower amount.
Lalta your question is not very clear. Anything pertaining to settling debt w/o a plan affects your credit. I would advise you to contact your local Attorney General’s Office b/c this sounds like a Consumer Affairs issue. Whenever you are in business you have to stay abreast your clients as well as contracted businesses. It is important to check business references. This may be a civil case. Hope this helps.
I have not had much luck with credit card companies
they are a bunch of people that don’t care about what
you want.I think the new rules that congress passed is only going to make it hard on us to getting credit cards
I received a letter from one of my credit card bank they
said they are going to still charge us pass due and late
fees and for every hundred dollars they will charge us 50%
of the increase. I told them to cancel my credit card I do not need them
I’m as frustrated as you! Remember, if you have less than 3 credit cards, it will HURT your credit score, so if you cancel that account, make sure you open a new one. Open one of the ones we recommend, so it will help and not hurt your credit score.
I have not had much luck with credit card company
they are a bunch of people that don’t care about what
you want.I new rules from congress is only going to
make it harder for us to credit cards.
Dear philip
hi
i need $50000 loan for home
can you cooperate by me?
nabi
For all loan questions, please call my partner Beth Antilla @ 310-709-9557. We can do loans all over California, and Beth has a lot of experience with FHA loans.
Thanks.
My CC company says we are not eligible for a settlement. I know they are trying to press us but what is the best we can do?
Read Karen’s post above… you will find valuable information there.
I am trying to keep up. Great thing to is CC companies keep reducing my credit line to just above what I owe..so my credit score keeps going down…Is it possible to get CC companies to reduce interest rate so I can get back on top?
Contact their hardship department…
From my experience, credit card companies will not negotate with you if your on time with your bills.
I know this makes no sense, but unfortunately, this is the way our society if functioning. Benefit the people who are not following the rules!
Can you imagine if we raised our kids that way?
I owe about $40k. There are some collection account and judgements. How do I get some of these off my credit history? I want to know how to negotiate with the creditors. I am looking for information. I am behind in payemnts but I am paying every month.
Thank you.
Lorna – The first question you should ask yourself is if you should file for bankruptcy. Secondly, focus on paying off/settling your debt (See Karen’s post above). Lastly, focus on your credit score.
Like you, too many people focus on their credit score while they are negotiating, instead of focusing on negotiating their debt.
Remember – it’s all about reestablishing your credit after this problem – which is exactly what we teach in our program.
Make sure you attend our teleseminar.
I have $40k in CC debt, current, and good FICO, how will it effect my credit, is it like a BK?
On a scale of 1-10, (BK would be a 10) how does this hurt me?
Does my score stay low until I finish my payments adn how long after I finish the program can I expect a low score?
John Hemet,CA
John, I can’t answer that question that easily. Here is what I know… a Bankruptcy will impact your credit score significantly, and it will impact your ability to get financing in the future.
HOWEVER, if you reestablish your credit correctly, after the Bankruptcy , you will have a 720 credit score 5-6 before that Bankruptcy falls off your credit score.
Really – raising your credit score after the bankruptcy should not be your concern right now. Right now, all you should worry about is becoming financially free.
Make sure you attend one of my tele-seminar classes soon!
This happened a few years ago. I had a very smooth salesman sell me 10 websites which were supposed to make a lot of money. I believed him and just kept on charging them to my credit cards. Well, they never did make any money for me. I paid off one or two of the small ones, then went into bankruptcy for a while. My payment was too high so I dismissed it and now one of the companies has written to me. I owe them $15,000 and, of course, they want it right now! I can barely make my living expenses as it is and I can’t afford to pay them anything! How can I get out of this?
I would explain to them very clearly that there is nothing you can do as you can barely pay your bills. Start there.
I asked my credit card company to reduce my percentage rate and was told flat out, “No.” How can I get past this?
Speak to the hardship department. Explain to them that if something does not change, you are not going to be able to pay your bills and that their credit card is going to be the first you stop paying on!
Since I am behind to payments. Can I redeem my score by paying twice in one 28 days cycle?
Your credit score will be affected as long as you are behind on your bills. If you want to get caught up, call the credit card company and tell them you want to get caught up as long as they waive some of the late fees.
Explain to them that the “late fees” are part of the reason why you cannot get caught up.
They will DEFINITLY waive some of them, when they do, report back!
I want to know how to “eliminate” the bad entry from my credit history. Can I request (or even) demand to have the item removed from my credit history is I pay the cc debt?
Was the “Bad Entry” legitimate or is it an error?
If it was an error, contact the credit bureaus and report the error (Step 5 in “7 Steps to a 720 Credit Score.”
If it’s legitimate, then don’t worry about it. Focus on reestablishing your credit, not getting legitimated items off your credit report.
This is the main difference between what we teach and what credit repair is.
I am interested in talking with my CC companies and look for principal reductions and/or interest rate reduction but don’t want it to affect my credit score….
Dusty – Unfortunately, this is simply not possible.