To settle credit card debt with Chase, start by figuring out whether Chase or a collection agency will negotiate your debt. If the account is in good standing or less than 180 days delinquent, you will negotiate a settlement with Chase. Chase will try to get you to pursue a debt management plan rather than settle, but may agree to a settlement if you present your case appropriately. If your account is more than 180 days delinquent, you will most likely negotiate with a collection agency, rather than Chase.
Regardless of whom you negotiate with, make sure the party involved understands why you believe that debt settlement is your best option. Additionally, make sure you do the math on debt settlement: It should save you money, even after factoring in fees and taxes. Finally, make sure you get all terms in writing.
How to Settle Chase Credit Card Debt:
- Decide if you want to pursue do-it-yourself debt settlement or hire a debt settlement company to negotiate on your behalf.
- Rehearse your conversation (if you’re doing the negotiating). Think about answers to questions about your income, your typical expenses, and the situation that caused your inability to pay.
- Reach out to Chase customer service at 1 (800) 935-9935 (if they are handling your debt). Otherwise, contact the collection company handling your case.
- Decide if you want to pursue the debt management plan Chase will most likely offer in lieu of debt settlement.
- Make a settlement offer. Factor in fees from your debt settlement company (if using one) and federal tax on the forgiven portion of your debt. You should still come out ahead. You can typically expect to settle Chase debt for between 25% and 60% of the balance.
- Get your agreement in writing through a signed debt settlement letter.
Your credit score will take a hit once the debt settlement has been reflected, but you can counteract this drop by practicing good financial habits. Create a budget that allows you to live within your means and pay your bills on time every month. Depending on your credit history, you can expect your credit to rebound in 12 – 24 months. You can track your credit score and get personalized credit improvement advice by signing up for a free WalletHub account.
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