How to Negotiate a Settlement With Discover Card

Negotiating a credit card settlement can be quite stressful.
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People get into debt because they lose jobs, face emergencies or have bad spending habits, but credit card issuers can sometimes help borrowers in these situations. The Discover Card settlement department works with issues like these all the time, and they also have a Financial Education Center to help customers learn more about credit management and getting assistance.

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Discover Debt Settlement

It is often in a credit card company's best interest to settle these kinds of debts. To begin with, negotiating debt and arriving at settlements allows them to recover some of their money. Issuers also have the incentive to hold onto customers and will help people to forge lifelong relationships that could later be profitable. Company representatives may also be more willing to help people when they are facing dire situations like job loss or bankruptcy.

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Discover offers resources for customers facing financial hardships, and they advise taking action before any payments are missed. They have payment assistance programs that provide temporary financial relief when income has been significantly reduced or eliminated. They recommend contacting their customer service department to find out more about these services.

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The Discover Card Settlement Department

People who cannot pay Discover Card debt outright may have to contact the Discover Card settlement department. Settlement may be possible for one large debt owed to Discover, and the amount may be negotiated down in some cases. This can benefit both parties – the debt goes away sooner, and the borrower is responsible for less. This option is only available to some customers though, and there are no guarantees that it will be offered or acceptable by either or both parties.

Discover is under no obligation to negotiate or offer these kinds of agreements, and debt settlements can go on for several years. Some borrowers may be able to apply for debt consolidation loans, which can be a viable alternative. Discover debt consolidation loans are offered in terms from ​36 to 84 months​, and may be available for account holders who are at least ​18 years old,​ have minimum household incomes of ​$25K​ and are U.S. citizens or permanent residents.

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These are actually personal loans from the bank and come with interest fees that range from ​6.99 to 24.99 percent,​ depending on the credit score. There will also be a ​$39 fee​ when payments are late. The good thing about a debt consolidation loan is that it can get multiple creditors off one's back. A Discover debt consolidation loan can also be canceled within 30 days by returning the money, and they will not charge any interest.

More About Discover Debt Settlement

Naturally, every case of debt settlement will be different and depends on the amount of money owed, the lender and the borrower's credit history. The staff at Consumer Recovery Network claim that people can reach settlements ranging from ​40 to 60 percent​ of the original debt, but adds that some accounts are flagged for no negotiations at all. Discover's debt settlement department bases their decisions on prior account usage, how long the person has been a customer and a "collectability" assessment.

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Discover cards get "charged off" when account holders are six months behind on payments. The debt is still owed, but the card cannot be used. For the best chances at a settlement, it is better to contact Discover's debt settlement department before this happens. It is also recommended to contact them in the last few weeks before that cutoff date. Otherwise, they might mark down the debt as being non-collectible.

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