How do I Negotiate a Settlement With Sears?

You can settle your credit card debt with Sears through a process called debt settlement. Debt settlement allows you to settle your balance for less than the full amount owed. To settle a debt with Sears, you will negotiate with the bank issuing the credit card. In August 2010 Citibank was issuing and managing the Sears credit card. If Citibank settles with you, it may place a negative mark on your credit report indicating that the account was "settled for less than the full balance." That could cause a temporary drop in your credit score.

Review your Sears credit card statement to determine how many payments you have missed. If necessary, call the number on the back of the card to ask customer service about the status of your account. Generally, Sears will not allow a settlement of your account unless it is seriously delinquent and about to be charged off. Charge-off generally occurs after you fall between three and six months behind.

Call the Sears customer service number on the back of your card to request a settlement if you are seriously delinquent. Explain that you are unable to continue making long-term payments on your account and that you would like to settle for less than the full amount owed. Make an unreasonably low offer by offering to pay 20 percent of the balance. The representative may counter with 70 percent. Politely end the conversation if you can't strike a deal, and follow up by increasing your offer slightly and putting it in writing. Mail the letter to the address on your Sears credit card statement. Continue your negotiations—by mail or phone—until you have an agreement.

Get the final agreement in writing. Adhere to the terms of the agreement by making all settlement payments as agreed. You can negotiate to pay off the settlement in a lump sum or over a few months.