Yahoo! Answers*

Question:

Can I ask credit card companies to reduce the amount I owe them if I can pay them in full? Effect my credit?

I came into some money recently and would like to pay off my credit card debt. Can I negotiate with credit card companies to reduce the amount I owe them if I can pay in full? How will doing this, if they will, effect my credit? The balances are high, over $10,000.

Answers:

1) Credit cards don't actually want you to pay them in full. They would rather you'd make the minimum payment each month, because that's how they earn money. But you can negotiate with card companies. The outcome depends on what you want, who you talk to at the company, and the alignment of the planets on that day.

2) I think lenders are more willing to negotiate if the account is past due. If it is current they probably won't negotiate a lower amount. It doesn't hurt to try, though.

3) The debt would likely have to go into collections or a severe past due amount before they would negotiate a lesser amount. If you're assuming negotiating your current balance on an open card, I absolutely doubt you would be able to negotiate that amount.

4) If it is delinquent they may do this for you - if they do it will show as a settled for less than full amount on your credit report and will have a negative impact - but not as big as not paying.

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