This blog post is designed to help people who are either interested in –
- 1.) Discover credit card payment assistance, or
- 2.) Getting a Discover debt consolidation loan
Discover Credit Card Payment Assistance in 2023 is available in multiple ways. Discover offers payment assistance directly and you can reduce Discover credit card debt through several third-party credit card relief programs, which will all get explained.
In addition, if you’re considering applying for a debt consolidation loan with Discover, we’ll help you understand more about their loans, including the pros and cons, the cost, and the credit requirements to qualify. You can then use this information to compare your options with other top-rated companies listed on our Top Debt Relief, Settlement and Consolidation Companies List.
First, let’s explore debt relief options that you can do on your own, working directly with Discover. We will then explain Discover debt relief, settlement, and consolidation programs for consumers that owe above $7,500 in credit cards and unsecured loans.
Can I Negotiate With Discover Card On My Own?
Yes, you can negotiate with creditors on your own. Many consumers prefer not to do so, but we’ll give you some tips to help you get started if you prefer to negotiate with Discover on your own.
- Contact your creditor directly.
- Ask to speak to a supervisor.
- Remind them of your perfect past payment history.
- Go in for the ask. Next, are a few options to consider asking for–
Ask Discover to Reduce Your Discover Card Interest Rate.
Another tactic you can use is to explain to Discover on a phone call that another credit card company offered you a more attractive card with reward points and cash-back.
However, you’d like to stay with Discover if they’re willing to reduce your interest rate. Discover will most likely reduce your interest rate.
Alternatively, instead of asking for a reduction in the interest rate, you could ask for a reduction in the monthly payment if you’re experiencing financial hardship. Explain to Discover that you’re experiencing financial hardship and don’t want to fall behind on monthly payments, and provide the details with proof.
Or if you already fell behind on the payment, ask if they can waive the late fee and re-age your account to show it’s current, as a one-time courtesy since your past history with them has been so positive. You can then explain, “And going forward, I will need either a reduced monthly payment or interest rate.”
Discover Card Help–Working Directly With Discover
Can you make payment arrangements with Discover? Yes, they offer a range of options to help cardholders who are facing financial hardship, including:
- Payment arrangements: You can set up a payment plan with Discover to pay off your balance over time.
- Temporary lower payments: Discover may be able to temporarily lower your monthly payments, which can help you manage your finances while you get back on your feet.
- Fee waivers: Discover may waive some fees, such as late payment fees or over-limit fees, to help reduce your overall balance.
To request payment assistance, you can contact Discover’s customer service department. They will work with you to understand your situation and help you find a solution that works for you. Contact Discover as soon as possible if you’re having trouble making payments, as this can help you avoid late fees, penalties, and damage to your credit score.
Discover Credit Card Payment Phone Number:
Contact Discover to find out if you’re eligible for a payment assistance program at 1-800-983-1412.
Discover It Credit Card Payment
CNBC states, “If you’re a Discover it® Cash Back or Discover it® Balance Transfer cardholder and face difficulty making your minimum payment, you may receive payment flexibility or waived late fees or interest.”
Getting Late Fee Waived on Discover Card
Every credit card company, Discover included, may offer to waive your late fee or reduce credit card interest rates. Especially with good payment history, Discover will approve reducing your credit card interest rate and waiving a late fee.
However, Discover may not do it automatically.
What Happens if I Can’t Pay My Discover Bill?
If you fall behind on Discover credit card payments, Discover will charge you a late fee and could increase your interest rate. This late fee will equal a percentage of your balance or a fixed dollar amount of up to $37. Source: Discover’s website.
Additionally, Discover will often pursue legal action to collect on past-due accounts. They are one of the fastest credit card companies to issue a credit card summons, attempting to sue the debtor to collect on a debt before it’s sent to a third-party collection agency.
Consumer Credit Counseling for Discover Credit Card Debt
Discover will recommend a consumer credit counseling program for consumers experiencing financial hardship. Consumer credit counseling is the most beneficial program for Discover because it ensures that Discover gets paid 100% of the debt PLUS interest. So, of course, Discover credit card payment help includes consumer credit counseling.
Discover will refer you to one of the licensed consumer credit counseling agencies (CCCA) that work within your state. However, you don’t need to go through their referral. Instead, visit the Department Of Justice website and check for licensed consumer credit counseling companies. You should always shop around with different companies and find the best plan. Make sure to compare each company’s Better Business Bureau (BBB) rating, online reviews, and details of complaints against a company. Also, check how long a company has been in business. If you’re contemplating using consumer credit counseling, go with the best-rated company.
Check out the Top 10 National Debt Relief Companies for 2022
10 Best Ways to Clear Credit Card Debt Fast in 2022
What is consumer credit counseling?
Consumer credit counseling programs consolidate credit cards into one monthly payment. Consumer credit counseling is considered a form of debt consolidation for your Discover credit cards, but it’s not a loan.
Instead, you pay the consumer credit counseling company every month and they pay your creditors but at a reduced interest rate. So, you’re responsible for making only a single monthly payment, no matter how many cards you have.
Consumer credit counseling companies have agreements with most major credit card companies allowing them to reduce the interest rate for their clients.
Cost for Consumer Credit Counseling
Consumer credit counseling companies can charge up to $50 per month and a one-time enrollment fee of up to $75. However, non-profit consumer credit counseling companies get paid by the consumer and a “fair-share” fee from creditors. The fair-share fee can equal 6-15% of the money Discover receives from the consumer credit counseling company.
Do consumer credit counseling companies work for the creditors? Experts feel this additional fair-share fee is a conflict of interest because the consumer credit counseling company is supposed to be helping the consumer. Discover is getting paid on both ends of the equation. They get to “Have Their Cake and Eat it Too!”. Technically speaking, yes they do work for creditors.
Discover Hardship Program
Do you have a significant reduction in income or financial hardship? A debt settlement program may be your best solution if you’d prefer to avoid trying to work directly with Discover or if they rejected you for one of the above-mentioned options. Working with a reputable debt settlement company, like Accredited Debt Relief, can be an excellent way to reduce and settle most types of unsecured debt and credit cards.
You can settle Discover credit card debt for significantly less than the balance owed if you can’t afford to stay current on monthly payments. However, Discover debt settlement programs have pros and cons, which we’ll discuss below.
Contact an IAPDA certified debt specialist to discuss your options. You could get a free credit report and score during the consultation. You will also get debt relief options for free. Call (877) 332-8007.
For consumers with Discover Credit Card Debt in Collection
Discover does not offer credit card payment assistance if your account is in third-party collection status. Discover would have wiped their hands clean of the debt by this point because that’s how they can recoup 100% of the debt through tax credits and then bring in additional profit by selling your debt to the collection agency. You see, a creditor uses a process called “writing off a debt.” Writing off debt illustrates that a creditor could not collect on it and that it was a loss. Consequently, they can claim that loss on their business tax return and get credited through the tax system, which is just as good as cash to them!
So, in reality, Discover is paid back “in full” after writing off a delinquent credit card bill. And in addition to recouping 100% of the loss through tax credits, they make additional profit by selling the account to a third-party collection agency. As a result, you can settle Discover credit card collection accounts for a significant amount less than the total debt you owe.
- Learn about credit card relief programs to help with debt collection accounts
- Compare the 20 best debt relief companies
How Discover Credit Card Settlement Programs Work:
After you fall behind on credit card payments, eventually, accounts get written off and sold to third-party collection agencies. At this point, a Discover debt can get negotiated and reduced, allowing you to pay a significant amount less than the total owed.
A benefit to debt negotiation programs is that debtors can pay less than they owe and get out of debt faster. Monthly payments can be even lower than when paying minimum payments on credit cards.
Contact an IAPDA-certified debt specialist to discuss your options. You could get a free credit report and score during the consultation. You will also get debt relief options for free. Call (877) 332-8007.
Cost for Discover Credit Card Debt Settlement Services:
Debt settlement company fees can vary from one company to another. Legally, debt settlement programs can only charge fees after a debt gets settled, but many will charge fees up-front illegally. These fees add up to around 25% of the total debt enrolled in the program. So, for example, if your credit card debt gets settled for 50% of the balance, with settlement fees included, you could get around a 25% discount on your total balance.
Benefits of Consumer Credit Counseling vs. Debt Settlement?
The main benefit of consumer credit counseling over debt settlement is that you remain current on monthly payments. Consequently, credit scores are less negatively affected over the program’s first year. You also won’t have to deal with creditor harassment and potential lawsuits. And late payments can be re-aged to show “current” with consumer credit counseling, improving credit scores.
The Downside of Consumer Credit Counseling
Conversely, consumer credit counseling programs take much longer to graduate than debt settlement and ultimately cost you more money. With debt settlement programs, there are flexible monthly payment options, and consumers can pick the most affordable plan. On the other hand, consumer credit counseling programs take nearly five years to graduate and require consumers to pay back all their debt plus interest. With debt settlement, consumers pay back less than they owe, including all interest and fees.
Downsides of Credit Card Settlement
The two most significant downsides to consider when exploring debt settlement include the following:
(1) the chance of getting served a summons, and
(2) the harmful effect settlement plans have on a person’s credit score.
These downsides, more than anything, can be stressful for the consumer. So make sure the company helping you explains these potential downsides and their proposed solutions.
That said, credit scores can get rebuilt. And a credit card summons can get resolved and settled, like any other debt, but it may cost a little more.
The Best Discover Credit Card Settlement Program
- The best settlement companies –
- Offer qualified clients a loan to settle each debt faster. In addition, companies base the client’s eligibility on their program payment history rather than their credit report.
- Only charge fees for their services after settlements occur, ensuring clients get results or don’t pay a dime.
- Help their clients resolve a credit card summons if one is received while on the program.
- Are licensed, accredited by the BBB and IAPDA, and have a high ratio of positive to negative reviews on the internet.
About Discover Debt Consolidation Loans
Discover offers debt consolidation loans to help people consolidate their high-interest debts into one low-interest loan. This can make managing your finances easier and pay off your debts more quickly.
To apply for a Discover debt consolidation loan, you must visit their website and complete an application. You’ll need to provide information about your income, expenses, and debts during the application process. Discover will use this information to determine if you qualify for a loan and, if so, how much you can borrow.
You’ll receive the funds directly from Discover if approved for a loan. You can then use the funds to pay off debts, such as credit card balances or personal loans. With one monthly payment and a lower interest rate, you can save money and pay off your debt more quickly.
It’s important to remember that a debt consolidation loan is not a silver bullet for debt problems. Consolidating your debts can be helpful, but addressing the underlying issues that led to your debt in the first place is essential. This may involve changing your budget, increasing your income, or seeking professional financial advice.
Credit Score Requirement for Debt Consolidation Loans from Discover
Discover does not disclose a minimum credit score requirement for debt consolidation loans. However, they consider various factors when evaluating loan applications, including your credit score, income, and debt-to-income ratio. Having a higher credit score can increase your chances of being approved for a loan and may qualify you for better interest rates and loan terms.
According to Discover’s website, they offer debt consolidation loans with fixed rates ranging from 6.99% to 24.99% APR, depending on your creditworthiness. If you need to figure out your credit score, you can check it for free through various credit monitoring services, such as Credit Karma, Experian, or TransUnion. It’s also a good idea to review your credit report regularly to ensure no errors or inaccuracies could negatively impact your credit score.
Interest Rates on Discover Debt Consolidation Loans
Discover offers debt consolidation loans with fixed interest rates that range from 6.99% to 24.99% APR, depending on your creditworthiness. The actual interest rate you receive will depend on various factors, including your credit score, income, and debt-to-income ratio. A lower interest rate can help you save money over the life of the loan, as you’ll pay less in interest charges. For example, if you consolidate $10,000 in credit card debt with a 24% interest rate into a Discover debt consolidation loan with a 12% interest rate, you could save over $2,000 in interest charges over a 5-year loan term.
When you apply for a Discover debt consolidation loan, you’ll receive a loan offer that outlines the interest rate, monthly payment, and other loan terms. Be sure to review the loan offer carefully and understand the total cost, including any fees or charges. Contact Discover’s customer service team for assistance if you have any questions or concerns about Discover debt consolidation loans.