What is a credit card settlement?

A credit card settlement may be available if you’re having difficulties making your payments. In a settlement program, an offer is made to repay a part of the total amount due. Here’s how it works:

  • Equal payment amounts are set up as part of the program.
  • The amount of the settlement will have a due date, usually less than six months.
  • Only the canceled balance is reported to credit reporting agencies as being charged off. See: What is a charge-off?

To see if you’re eligible for a credit card settlement, see: How can I see a credit card settlement offer?