Anyone negotiated reduced amount for one-time credit card pay off?

[williaminajetfighter]

Thanks to a kind relative I have a lump sum of cash this Christmas that I'd like to use to pay off a few credit cards. They are high interest cards and I'd like to pay them off and cut up the cards/close the accounts. I have heard that it's possible to approach the credit card company and tell them that you're struggling to make payment and suggest a one-time pay off amount of less than 100% of the amount.

So if the debt is, say, 2000 pounds I could ask them if I could pay it now and clear the whole account for 1750. A figure of about 80% of the debt would be ideal.

Has anyone else done this and how do I go about it. Does it have to get to the point of 'defaulting payments' or out to a 3rd party to manage the debt before the credit card would consider a reduced one-off payment to clear the account?

Any advice about this would be appreciated.

Generally it's only possible to do this when the creditor is unlikely to ever get the money back from you, so defaults, debt management plans etc. At the moment there is no incentive for them to accept a lower amount - they are currently getting back the money you have spent, plus all the interest.

That's not to say its not worth calling them to ask, however I doubt they will agree to it.

TBH I'd use it to pay off half of each of them
BUT
at the same time, freeze the repayment amount on each one at the amount you repaid last month
that way you will be debt free within a year

plug your numbers into my spreadsheets ....
I'll bump the thread to the top of the page for you