I want to offer a lump sum to pay off my credit card with CitiCard, which uses a collection agency to handle delinquencies, so I'm not talking directly to CitiCard. The collection agency says they have to get approval from CitiCard on committing to any lump sum figures. How low of a percentage can they go when offering a lump sum payment? Would 45% or less be reasonable?

CitiCard has so many divisions branching off Citibank, it's impossible to get a phone number to Citicard to speak to someone with authority to negotiate a lump sum payment. Instead, they use a 3rd party to handle those issues. I think I would do better talking to a CitiCard manager. How do I find the person and phone number?

Every credit card company has a l800 number which is found on your statements. I have never had difficulty finding the right person to talk to at mine. Just read your statement, phone the l800 number and wait till you have a rep, tell them what you want, and go from there.

I did a debt consolidation with my credit card company and am paying ll% on a line of credit set up for me by them. I never dealt with a collection agency over this.

You have to be kidding about the 45 per cent or less, right??

No, 45% is absolutely doable. I've negotiated this kind of thing many times in the past for self and family/friends. Just remember to:

• Stay civil, if anyone ever gets mean on the phone, tell them you have to talk to them later when everyone is calm, and do that
• Magic words "working diligently on my finances to avoid bankruptcy proceedings and need your help". Bankruptcy means they get nothing, so these words are meaningful to them, especially if you sound genuinely sincere
• Offer them half of what you really want to pay and let them negotiate you up to you real number. If 45% is your goal, you'll need to start around 25%. They'll laugh/scoff, but you stay sincere and indicate this is the area you need to be dicussing...what do they think they could accept in that ball park.
• Get your agreement IN WRITING, in advance, must "settle the debt in full with no recourse" and close the account in good standing.
• Send them a check, DO NOT give them on access to your accounts electronically

Yeah, this is totally doable.

I disagree. A 45% settlement would be reasonable IF the debt had been charged off and sold. But not while Citibank still owns it. I doubt if they would settle for less than 75% under those circumstances. Doesn't mean you can't try, but I wouldn't be too optimistic.