Can I negotiate my credit card debt?

Credit card debt can sneak up on you. Even if you aren’t splurging on dinners out or travel, the rising cost of everyday essentials, such as groceries and rent, can cause you to lean on your credit cards to cover the bills.

You’re not alone if your credit card bill is higher than usual. According to Experian, consumers had an average of $6,730 outstanding credit card debt in 2024, up 3.5% from the previous year.

Whether you lost your job or are struggling with medical bills, you may be able to negotiate your credit card debt with your creditors and potentially save money.

High interest rates can make it difficult to handle your debt — the Federal Reserve reports average annual percentage rate (APR) for credit cards that assessed interest was 21.91% as of February 2025. Credit card debt is negotiable, but it can be tricky.

Obviously, credit card companies want you to pay your bills on time and in full. However, if you’re struggling to keep up with your payments, they are often willing to work with you to improve the odds of eventually securing payments. And, they want to work with you to avoid you declaring bankruptcy, which would mean they lose the balance of what you owe.

Depending on your circumstances and your creditor, you may be able to negotiate one or more of the following outcomes:

Lower APR: In some cases, the credit card company may be willing to lower the APR that applies to your existing balance. A lower APR will reduce the amount of interest that builds, and more of your payments will go toward the principal so you can pay off your debt faster.
Waived fees: If credit card fees have built up, such as late payment fees or returned payment fees, the creditor may be willing to waive those fees if you can demonstrate that the late payments were due to a temporary hardship and you’re committed to making timely payments in the future.
Reduced payoff amount: If you are delinquent on your credit cards and have neared the point where bankruptcy may make sense, the credit card company may be willing to settle your debt for less than you owe.

Not all credit card debt is severe enough to make negotiation beneficial or necessary. But, in some cases, it can be worthwhile. These are a few signs that it may be time to negotiate with your creditors:

You’re behind on your payments, with no foreseeable way to get back on track.
You’ve lost your job or had a medical emergency that damaged your finances.
Your balances continue to grow out of control.
You’re considering bankruptcy or thinking about hiring a debt settlement company.

Before the situation gets more out of control, negotiating your debt is likely the ideal next step.

While you can hire a debt relief provider to handle the negotiations for you, they often charge high fees; the fees can be 15% to 35% of your enrolled debt. As a result, handling it yourself may be more cost-effective. If you decide to move forward with credit card debt negotiation, follow these steps:

Know where you stand: Review your credit card statements and report so you know exactly how much debt you have, your monthly payments, and what APRs apply.
Collect documents: Collect documentation to prove your case if your finances have taken a hit due to extenuating circumstances, such as a major illness or a recent layoff. For example, a copy of your recent medical bills or unemployment benefits can help show your creditors that circumstances outside your control have hurt your ability to repay your debt.
Contact customer service: Call the creditor’s customer service line and ask to speak with the financial hardship department. Explain that you are unable to afford your debt and need assistance.
Ask for what you need: Tell the representative what kind of help you need. If you think your financial hardship is temporary, you’ll likely qualify for an interest rate reduction or waived fees. Debt settlement may be an option if your financial difficulties are more significant.
Confirm the details in writing: Whatever terms you come to with the representative, request that they send you the agreement details in writing.
Stick to the agreement: When you reach an agreement, uphold your side of the bargain by making your payments on time. If you fall behind, you risk losing any concessions the creditor made.

Negotiating credit card debt isn’t always possible. Instead, one of the following methods may be a better fit.

A balance transfer can be a useful strategy if your balances are relatively low but have become unmanageable due to the high APRs. You may be eligible for a credit card with a low APR for a specific period, such as 0% for 12 months, which gives you time to pay down your balance without interest. This approach is best for those with good credit who haven’t yet missed payments.

Best balance transfer credit cards for 2025: Don’t pay any interest until 2026

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With this repayment strategy, you pay the minimum amount required on all your accounts, but put any extra money toward the account with the highest rate. Once that account is paid in full, you move the amount you were paying toward the account with the next highest rate, and continue this process until you’re debt-free. It’s a good approach for those who can afford the minimum payments and want to cut down on the interest that accrues.

A debt consolidation loan may be a smart alternative if you want to lower your payments and save money. If you have good credit — or have a creditworthy co-signer — you may qualify for a personal loan with a lower APR than you have on your credit cards. You use the loan to pay off your credit cards, and, moving forward, you have fixed monthly payments.

If you’re overwhelmed by your debt and aren’t sure what your next steps should be, contacting a nonprofit credit counseling agency and entering into a debt management plan (DMP) may be a wise next step. The agency will negotiate with your creditors to lower your rates and waive fees. You’ll make a single payment to the agency, and the agency distributes the payments to your creditors for you. Typically, you can become debt-free under a DMP in five years or less.

Whether you negotiate your credit card debt, take out a debt consolidation loan, or enroll in a DMP, it’s critical that you address the root causes of your debt so these strategies are effective:

Set a budget: Creating a budget and identifying expenses you can eliminate or reduce is a key first step in managing your debt and successfully handling your finances.
Boost your income: To accelerate your debt repayment — and to get more breathing room in your budget — look for ways to boost your income, such as selling unused items, picking up a side gig, volunteering for overtime or extra hours, or getting a roommate.
Set up automatic payments: To ensure you make all your payments on time and maintain your credit score, sign up for automatic payments.
Ask for help: Ask for help when you need it. Meeting with a non-profit credit counselor or scheduling regular check-ins with a trusted friend can help you stay on track.

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