Should You Negotiate a Repayment of Your Credit Card Debt?

 Posted on March 05, 2025 in Bankruptcy

Americans have a great deal of credit card debt – over $1.21 trillion in total as of February 2025. We use credit cards for nearly every financial transaction, and credit cards are only becoming more commonplace, not less. Given the often high interest rates on credit cards, it is not surprising then that we have so much credit card debt.

However, it is not necessary to live with overwhelming credit card debt. There are options to manage or even get rid of credit card debt. Besides bankruptcy, it is possible in some cases to negotiate a debt repayment, also called a debt settlement. An experienced Charlotte, NC credit card debt attorney advises clients on whether negotiating a debt settlement is right for them.

How Do You Negotiate a Credit Card Debt Settlement?

If you have struggled to pay your credit card debt on time and have amassed more credit card debt than you can manage, you may try to negotiate a debt settlement with your credit card company. When you negotiate a debt settlement, you agree to pay a smaller amount than you owe in a one-time payment in exchange for the credit card company erasing the rest of your debt. 

Pros of Negotiating a Credit Card Settlement

Lower Your Debt

Successfully negotiating a debt settlement results in lowering your debt. In fact, this is the main purpose of negotiating a debt settlement, to erase a significant amount of unsecured debt. 

Stops Collections

When you reach an agreement to repay your debt, you stop getting calls from collectors related to that debt, as the settlement deletes the debt. This can significantly reduce your stress from predatory debt collectors. 

Cons of Negotiating a Credit Card Settlement

Credit Score Impact

Credit card companies will usually report the debt settlement to the credit bureaus, which can result in a lower credit score. While negotiating the debt settlement it is also important to continue making credit card payments so as not to incur more late fees that can harm your score. 

Predatory Debt Settlement Companies

Debt settlement companies offer to negotiate the debt settlement on your behalf for a fee. However, some of these debt settlement companies may be scams. Even when they are not, they often charge high fees, even if the credit card company does not agree to resettle the debt in the end. A bankruptcy attorney can be a vital ally in the debt settlement negotiation process.

Call a Charlotte, NC Credit Card Debt Attorney 

If you are going through hard financial times or have collected a great deal of credit card debt, you do not have to deal with this issue alone. Reach out to an experienced Fort Mill, NC credit card debt attorney. At Blossom Law PLLC, attorney Rashad Blossom represents her clients with skill and diligence, whether it is in bankruptcy or by helping you negotiate with your credit card company to repay your debt. Call our offices at 704-256-7766 for a complimentary consultation today.