Can I Call Citi to See if They WIll Let Me Settle My Debt For Less? – Joe

“Dear Steve,

I have apx 22K in credit card debt from medical bills one year we didn’t have medical coverage. I have steady income now and can access apx 15K in a HELOC.

I have apx 22K in credit card debt and am current, can I get them to settle? We are current and have never been late with them. My current credit score is 720. The bad thing is that there is a chance that soon I may be losing my job. Is it possible to call CITI on my own and see if they would accept a lump payment of say 12K to settle this debt? How would that affect my credit score?


Dear Joe,

If you did a lump-sum debt settlement with Citi you could probably get them to take 15K on a 22K debt. But they really are not going to entertain any serious offers as long as you are current on that debt with them. Why should they settle for less as long as you are paying and current?

I am not a fan of debt settlements when someone pays monthly payments to a company and then eventually the company will contact the creditor to settle. However, I have seen the lump-sum debt settlement approach work very successfully. This is where you and the creditor come to an agreement and you get it in writing and pay the creditor immediately.

If you do decide to settle the debt then using a debt settlement professional makes sense. They will be experienced in what to do and know the types of deals that Citi normally agrees to. Otherwise you will be hoping that they give you a good deal. But you won’t know if they screwed you or not since you have no experience to judge it by.

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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