If you pay a lump sum, will credit cards bargain with whats owed?

I owe a credit card over $20,000. If i offer them a lump sum of money ....say $15,000. to get the card paid off, do companies bargain with you like that????? Anyone had experience with this?

If you pay a lump sum, will credit cards bargain with whats owed?inflation rate

It totally depends on your credit score. If you have a low credit score, then banks will negotiate because they may fear they will not get paid. If your score is higher, above 600 with the highest around 850, you may not be able to negotiate. I do not know your circumstances. However, you pay tax on the difference of what you pay and what you owe, so it will still cost you some money. Plus if you settle, this will appear on your credit report for 7 years from the last payment. Are you settling with the bank or issuer of credit cards or the collection agency. I would highly suggest if you have good credit, just try and pay the $15,000.00 and bargain your interest rate down or transfer the $5,000.00 to a lower rate card. The other possibility is going to one of those supposed not-for-profit agencies that negotiate with your lender for a lower rate. Be careful who you choose. Bad credit stays with you for at least 7 years so unless you are in a very bad way, for moral, ethical, and financial reasons (a better credit score means a lower rate), you are better paying. The last resort of course would be a bankruptcy attorney.

If you pay a lump sum, will credit cards bargain with whats owed? loan

It is possible, but they may also report the $5,000 as debt relief and report you to the IRS with a 1099-C.

IF that happens, you will owe income tax on the $5,000 as though it were income.

Pay the $15K towards what you owe and If your credit is decent, try and get some balance transfer cards as close to zero % as possible for the balance, and pay them down/off.

It%26#039;s YOUR debt. Don%26#039;t be a deadbeat.