How to Get Your Bank to Give You a Lower Payoff Balance
- 1). Prepare to offer a settlement by reviewing your bank statements and deciding what you can afford to pay. For example, If you owe $6,000 on a bank credit card, but you're able to pay $2,500, begin your negotiation with the lower amount.
- 2). Save your money. Banks accept debt settlement offers when debtors have cash on hand and aren't looking for a payment arrangement.
- 3). Plead your debt settlement case. To get your bank to give you a lower payoff balance, you will need to explain your financial situation. Your bank may negotiate a settlement if your debt outweighs your income and you're on the verge of filing bankruptcy.
- 4). Send your letter to the bank with your requested settlement. Provide your name, reference your account number and state the amount you owe. Present your offer and expect the bank to counter your offer.
- 5). Review the bank's acceptance letter once you have come to terms. This letter outlines the terms of settlement and offers instruction on where to send your payment. Verify that the document puts a halt to collections and closes your account once your payment has been posted. Send your payment as soon as possible or within 30 days of the bank's settlement.
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