Settling Credit Card Debt Without A Debt Settlement Company

Information verified correct on October 21st, 2016
calendar reminder for payment

Overview of Debt Settlement

There are many benefits to settling credit card debts. Even more benefits if you can settle credit card debt without a debt settlement company. By forgoing the settlement company, the borrower saves the fees that are tacked on by the company, therefore greatly reducing the size of the debt owed to the credit card lender. By reaching a debt settlement agreement prior to the debt being passed to the debt company, the debtor can save an incredible amount in the reduction of fees.

When a debt settlement company gets involved, it is much harder to reach a settlement. When a company is involved, the borrower adds on another creditor making it even harder to get out of. The borrower will then have to pay back the debt company the original debt plus the fees added on by the debt company. So reaching a settlement with the creditor prior to a settlement company getting involved is always ideal.

Tips to Settle Credit Card Debt

In order to settle the credit card debt independently, there are things that the borrower must have available and specific things they need to know prior to placing their call to the credit card lender. They are:

  • All paperwork from lender to borrower
    This includes a recent credit card statement along with any past due notices and any settlement notices from lender.
  • A settlement figure they are willing to agree to
    Before placing the call to the credit card company, the borrow needs to come up with a realistic settlement amount to present to the lender. This figure can be a lump sum payment or a reduction of the monthly payment.
  • The borrower will also need to know how long the debt has been past due
    The length of time plays a pivotal role in just how willing the lender will be in reaching a credit card debt settlement.
  • When dealing with the lender, the borrower needs to always refrain from becoming frustrated and argumentative
    In doing this, the borrower is more likely to reach a settlement with the lender. Even if a settlement is not reached at that time, the borrow still needs to act in a courteous and mannerly way.
  • Borrowers should push for removal of fees and penalties
    By doing this the borrower greatly reduces the amount of the debt owed to lender.

When calling the credit card lender, the borrower must always keep in mind that the goal is to reduce the credit card debt amount, not to completely wipe away the debt. By the borrower getting the credit card lender to remove the fees and penalties, the credit card debt settlement is much more manageable.

An Important Side Note

It is important to know that not all borrowers will be able to reach a settlement on their credit card debt. It is also important to know that not all settlements will be reached prior to a debt settlement company gets involved. It is equally important to note, that it is always worth a try. It may also be a good idea to check your credit history and ordering a copy to make sure there are no unknown or incorrect marks on your credit file.
My Veda Alert credit file monitoring service

Back to top
Was this content helpful to you? No  Yes

Related Posts

Ask a Question

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the privacy policy, receive follow up emails related to and to create a user account where further replies to your questions will be sent.

2 Responses to Settling Credit Card Debt Without A Debt Settlement Company

  1. Default Gravatar
    Darren | August 25, 2014

    If I have a credit card debt of $35k with a bank, but also have a property valued at $500k and a loan with them of $335k, can the bank do anything with the property I have if I stop paying the credit card off?

    • Staff
      Shirley | August 27, 2014

      Hi Darren,

      Thanks for your question.

      Please check the product disclosure statement of your credit card, under the financial hardship section. It should state what the course of action is if your financial commitments can not be met.

      In most cases, your debt is transferred to a debt collector, and new payment terms can be made.


Credit Cards Comparison

Rates last updated October 21st, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info
NAB Low Rate Credit Card
The NAB Low Rate Card offers 0% p.a. on purchases and balance transfers for 15 months. This card also comes with a low annual fee.
0% p.a. for 15 months (reverts to 13.99% p.a.) 0% p.a. for 15 months with a one off 3% balance transfer fee $59 p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

Ask a question