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How to Ask a Credit Card Company to Deduct Interest Charges for a Settlement

by Joey Papa
  • Overview

    If you find yourself in a financial crunch, there are ways you can ask for assistance from your credit card companies. Many times if a life event such as divorce, job loss or a medical emergency occurs, you can negotiate with your credit card company to deduct interest charges for a settlement. Although this approach is not encouraged when a person is financially stable, a person in a financial crisis may need to implement certain steps to deduct outstanding interest charges.
  • Send a Formal Letter

 
  • Step 1

    Prepare a formal letter to your credit card company describing in detail your current financial situation. You can include recent events, medical bills and the any other details that will help your creditor understand your situation.
  • Step 2

    Have a financial lawyer look over the letter and make any additions or suggestions that will strengthen the validity of the letter. If the lawyer is willing, ask him or her to send a letter along with you letter.
  • Step 3

    Send the letter and ask for a written response from the creditor that you can keep on file. You may have to stop paying on your credit card in order to qualify for some special programs to reduce the interest charges.
  • Call Your Creditor

    • Step 1

      Call your creditor and explain verbally to the representative what you're planning on doing. Inform them that you have sent a formal letter in the mail and are consulting with a lawyer to resolve the interest charges.
    • Step 2

      Be clear and concise about your situation and your intentions in the matter. If you have good or excellent credit, use that to your advantage to demonstrate your commitment to pay off your debts.
    • Step 3

      If you don't receive a formal letter in the mail within a month, call the creditor again to inquire about their decision in deducting your interest charges for a settlement.
  • Hire a Lawyer

    • Step 1

      Hire a lawyer to cover any loopholes you may create by communicating on your own.
    • Step 2

      Give your attorney the power to communicate on your behalf with your creditor and ask for different considerations.
    • Step 3

      Always review your lawyer's recommendations and stay in the know of what he or she is doing on your behalf.
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    • Always consult with a financial adviser before making any major financial decisions.
    • Always consult with a financial adviser before making any major financial decisions.

    References & Resources