Credit card debt: How to negotiate with credit card companies to minimize what you owe.

Five years ago, I faced a daunting challenge: nearly $30,000 in credit card debt. A 2023 Debt.com survey revealed that 35 percent of adults had “maxed out their credit cards in recent years due to rising inflation and interest rates.” The survey also showed that 22 percent had between $10,000 and $20,000 in credit card debt, a figure that rose to 41 percent among millennials. Although I couldn’t afford his services, he offered me one of the best free tips I’ve ever received: Credit card companies might be open to negotiating and even settling my debt. Plus, settling my credit card debt meant I could avoid the high fees these companies typically charge, which can be up to 25 percent of your debt. I know it seems scary and counterintuitive, but missing a few payments signals to the credit card company that you are in financial distress—which you are if you have tons of credit card debt, even if you’re able to make your monthly payments.