You can always attempt to negotiate new terms with the creditor that include lowering the interest rate or even an overall settlement for less than the full amount of outstanding balance owed. But such negotiation efforts will largely depend on the creditor’s willingness to agree to such terms. Unfortunately, you have limited leverage in your particular situation because at the moment you are current and show no signs of an inability to pay the minimum payment amount requested (as you have been making more than the minimum payments). When you continue making payments like you are currently doing, the creditor would prefer to continue having you make such payments allowing them to collect as much interest as possible (which is pure profit for them). So in your attempts to negotiate, the creditor will evaluate cost of receiving a settlement amount or agreeing to new terms including a lower interest rate versus continuing to receive the monthly payments over the next couple of years. You should consider engaging them in negotiation and settlement discussions and hopefully you will be able to reach a resolution that will get this debt resolved in a manner that is acceptable to you. But remember that the creditor has no obligation to renegotiate the terms of your relationship just because you want to stop paying interest (exactly what the creditor does not want you to stop doing). Consider employing an attorney to assist in negotiation efforts if you are unable to resolve on your own.
Scott Silver, Esq.
Credit Advocates, LLC
Toll Free: 1-800-ABC-DEBT (222-3328)
** The general information provided above is made available for informational purposes only and is not intended to be legal advice, but merely convey general information related to common legal issues. This communication does not create an attorney-client relationship, nor is it intended to do so.