Detweiler, a personal finance expert for Credit.com, said one mom who e-mailed me about her debt-troubled daughter could have the daughter call her credit card companies and explain that she is unemployed and simply cannot pay. do not volunteer too much information when negotiating, though.

The daughter would not, for example, want to say upfront, “Hey, my mother is willing to give me $4,000 to deal with the problem.”

“If she does start to talk settlement,” Detweiler said, “she should start with a figure lower than what she has to work with.”

‘A tricky thing’

Would a credit card company listen to a request for a settlement? Experts say it’s possible — especially if the creditors are concerned that the consumer would otherwise file for bankruptcy.

“There are a lot of consumers right now who just can’t pay all their bills,” Detweiler said. “Unfortunately with (high) unemployment, you just don’t know when things will turn around.”

Still, there are many risks.

It’s likely that the card issuer will close your account if you call and say that you’re jobless and cannot pay.

If you’re still making payments on time, credit card companies typically aren’t going to offer a settlement. they assume you will continue to pay to protect a higher credit score.

“It is a tricky thing,” said Dorothy Guzek, certified financial counselor for GreenPath Debt Solutions in Troy.

Typically, Guzek said, a creditor will be more apt to offer a settlement if the debtor is a few months behind. a foreclosure and a bad credit score might make a creditor even more willing to settle.

“The higher the risk, the more they settle,” Guzek said. “The creditor is usually looking at ‘Am I going to get my money back?’ “

If you do negotiate a settlement — say $3,000 upfront to settle $5,000 in credit card debt — you will hurt your credit score.

And if you have a job and really could pay off the card, you don’t want to stop paying your bills to try for a settlement. that can backfire.

Consumers who attempt to settle a debt by themselves or work with a debt settlement company must be aware that the credit issuer always has the option of a lawsuit.

Most important, get any agreement in writing — so the creditor doesn’t demand more money after you’ve sent a large sum that you thought would settle things.

And be honest with yourself about whether settling the debt will really solve your problems. If you’re jobless, for example, would it be better to pay what you can on the credit cards — and keep some money in reserve for other emergencies or expenses?

Before making one move or another, do your research and explore your options by talking to a credit counselor or a bankruptcy attorney.

Be wary of credit card debt settlement offers, prepare a plan to cut debt

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