Drowning in Credit Card Debt?
Missed multiple payments? Credit card settlement might help you cut your losses—but it's not a free pass.
What Is Settlement, Really?
It’s an agreement where you pay a reduced amount—less than the total due—and the bank considers the loan closed.
Is It Legal?
Yes, it’s legal. But it's up to the bank to accept your offer. You’ll need a strong reason like job loss or health issues.
How Much Can You Settle For?
You could settle for 40–70% of the total dues. The bank weighs your ability to pay and your history with them.
The Catch: Credit Score Hit
Settled accounts are marked as “settled,” not “closed.” This drops your credit score and affects future loan approvals.
What Happens After Settlement?
Your account is closed. You can't use that card again. And getting new credit might be hard for a while.
Can You Do It Yourself?
Yes! Call the bank, explain your situation, and negotiate. Be honest and calm—banks want to recover something.
Beware of Scammers
Avoid shady agents promising 90% off. Use only trusted financial advisors or approach your bank directly.
Should You Go for It?
Only if all other options fail. Try repayment plans or balance transfers first. Think long-term impact, not short-term relief.
Final Word: Plan, Don’t Panic
Debt can be overwhelming, but there’s always a way out. Be proactive, seek help, and make smart financial choices.