Yes, it is possible to settle credit card debt. What you must do is send an official email to the credit card issuer. Explain your situation to them, after a few negotiations, the credit card company come to the conclusion of a settlement. What is credit card settlement, and how to start? In a settlement, the lender approves your request that you’re not eligible to pay the full due amount. Now, what lender does is they give you an option to pay a nominal percentage of your debt in a lumpsum and close the account. Suppose you’ve a loan of Rs 8 Lakh with due interest of Rs 3 Lakh and late payment fees, etc. Now, what credit card companies offer in a settlement is an option to settle the bills for 10-20% of your due bill amount. As per the above example, your debt is around Rs 10 to 15 Lakhs. Now you’ve the option to pay Rs 1 to 1.5 Lakhs in lumpsum and settle your bills with the credit card company. How does credit settlement impact your credit score? Credit settlement does have a negative impact on your credit score and report, but post-settlement, you get debt-free. Your credit report will be marked as “Settled” when you close a credit account with a bank/NBFC in terms of settlement. Settlement is a way to get out of debt in case you’re unable to pay the full amount to the credit card issuer. But make sure this is the last option on your list when you’re due for credit card payments. Because a settled debt only makes it difficult for you to borrow any loans or credit cards in future. And if you’re not capable of paying the debt in full, the settlement option will allow you to get debt-free and stress-free from the financial constraints of credit card companies.(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)