Can we settle our credit card debt?

by kerri
(millsboro,de, united states)

My fiance' has about 700 dollars in a credit card can we offer half of that for a settlement? If not, how much should we offer?

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Mar 17, 2010
settlement offer for credit cards
by: Gerri

Thanks for submitting your debt collection question on our Q&A page.

I get a lot of questions about whether someone is getting a good deal with a settlement offer. But here is the thing about settlement. It's really not about trying to eek out the lowest settlement. If you legitimately owe the debt, then it's really about coming up with terms you can afford.

So if all your fiance can afford is half the amount she owes, then that's what you're trying to settle for. If that is the amount she can afford, then she should offer less than that so she has some room to negotiate. How much the creditor will actually settle for depends on a lot of things, including their internal policies regarding settlements, your fiance's financial situation, how much she owes to other creditors, etc.

Keep in mind, she will not be able to settle a debt she is currently paying on time for less than the full amount. Settlement only works when someone is behind on payments and at risk of not paying at all. So if she's kept a current payment history on her accounts, it may not be worth it to try to settle just to save $350.

I would encourage both of you to listen to our free debt settlement podcast to get a better idea of what's involve with negotiating credit card debt.

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