Debt settlement negotiation is initiated in two ways. The creditor—in this case, a credit card company—contacts you, or you contact the credit card company to eliminate your debt. Whether you contact the credit card company or the company contacts you, the goal of the debt settlement negotiation—for the company—is getting you to pay as much money as you can to pay off the debt. Thus, it’s important to keep in mind that the credit card company is not your friend or interested in working with you so that you can pay as little as possible. Therefore, you should be aware of all the credit card debt settlement negotiation tactics that the company’s representative will use to have an edge over you.
If you’re interested in paying off your unpaid credit card debt, you may have saved money to pay the creditor. Yet, that amount may not be what the credit card company has in mind. In that case, the credit card company’s representative will try to convince you to pay more than you can afford. If you agree to pay more, then you may miss payments and end up getting sued by the credit card company.
The representative may tell you that the company can take your home or car if you don’t pay off your credit card bill. The company cannot take your property. The only things they can do are sue you or garnish your wages.
Some debts are not worth paying because they are too old. However, a credit card or debt collection agency will try to convince you to pay the debt. Instead, request a validation of the debt. If it’s too old (what is sometimes called a "zombie debt"), you won’t have to pay.
You don’t have to go through the debt negotiation process alone. Before any negotiations start, talk to your lawyer.