How do I negotiate a Citibank settlement?

In order to negotiate a Citibank settlement, you need to contact Citibank or the collection agency assigned to the debt. You can figure out whom to contact by referring to the most recent notice you’ve received. This will also enable you to research how the debt settlement process works with that particular company. Another way to get a leg up before negotiations begin is to determine exactly what you can afford to pay in a settlement. It’s important to only sign a settlement agreement if you are confident in your ability to make the payment(s) it calls for.

Citibank Settlement Options:

• If your Citibank debt has not been charged off, Citibank offers a few methods of debt management to help ease the strain caused by your debt. These include eliminated late fees, reduced monthly payments, and bringing your account to good standing. If you want to pursue these options instead of debt settlement, you can call (866) 936-4812 to speak with the Payment Assistance Team.
• If you wish to pursue debt settlement with Citibank directly, rehearse your conversation before calling customer service. They will likely ask about your income, expenses, and the situation that caused your inability to pay.
• If your Citibank debt has been sold to a debt collector, you will need to settle with that collection agency. Every collection agency is different, so it’s a good idea to research the settlement process with them so you know what to expect.

When negotiations begin, make sure your initial offer has a buffer to allow for counteroffers that you can afford. Your settlement percentage will be determined by factors such as the existence of a financial hardship and your available cash for a lump-sum payment. Additionally, if you negotiate a settlement that involves a monthly payment plan, the length of repayment will influence the agreed-upon percentage. Traditionally, Citibank debt settlement amounts are around 40% of the original balance.