How to Settle Debt with Capital One

Sarah Edwards | January 06, 2023

Capital One is one of the largest consumer and business credit lenders in the U.S. The company is known for introducing the mass marketing of credit cards to the public in the mid-1990s. Since then, the business has grown to include traditional banking services, auto loans, and retail credit cards.

Millions of people use financial services provided by Capital One, including credit cards and loans. Capital One is known for offering a wide range of loan products, even to individuals with fair or poor credit scores.

If you owe a debt to Capital One, you’re not alone. Many people have difficulty keeping up with their credit card payments. There are a few ways you can reclaim your financial health and overcome your debt with Capital One. In this article we’ll explore these options and more.

Let’s get right to it.

How can I pay down my Capital One debt quickly?

Capital One, like most creditors, charges interest rates on its credit cards and loan products. The higher the interest rate on your loan, the more difficult it will be to pay off your debt. Most of the money you pay monthly will go toward interest and fees.

However, if you can find a way to increase the amount of money you pay to Capital One each month, you’ll make more of a dent in your obligation while also improving your credit score.

You can increase the money you pay to Capital One in two ways. You can cut down on your other expenses or increase your income.

Reducing expenses is best for people who can’t take on an extra job. You’ll want to identify some cost savings measures, like cutting down on dining out or entertainment for a while.

If you can’t find a way to reduce your expenses, you may need to get an extra job. You can use all of the earnings from your additional job to pay off Capital One. The more you earn, the faster you will repay your debt.

Can I negotiate a payment plan with Capital One?

If you’ve fallen behind on your payments to Capital One for a few months, the company may be willing to negotiate a payment plan for you. You can try to reach an agreement allowing you to pay a set amount of money to the company over a specific period.

Usually, Capital One will stop future interest charges on the debt, but they will close your account with them.

A payment plan can last anywhere from a few months to a few years, depending on the amount you owe the company and your ability to make repayments. Contacting Capital One to set up a repayment plan can keep you out of legal trouble from a debt lawsuit, but it may harm your credit score.

Settle your Capital One debt before going to court

If you’ve failed to make arrangements with Capital One to pay off your debt, they could pursue a lawsuit against you. If the case goes to court, a judge might award Capital One a default judgment against you.

A default judgment gives Capital One the right to pursue further collections activity, like garnishing your wages or freezing your bank account.

You’ll want to avoid a default judgment at all costs. You can do so by settling with Capital One before your court date.

Follow these three steps to settle your debt with Capital One:

1. Respond to the lawsuit.
2. Send a settlement offer.
3. Get the settlement agreement in writing.

Below, we’ll break down each step in detail for you. You can also watch the following video to learn more:

1. Respond to the lawsuit

You can avoid losing your debt lawsuit against Capital One when you file an Answer in response to the Complaint they filed against you. Your Answer addresses the grievances that Capital One lists in the Complaint. You may have specific reasons that prevent Capital One from obtaining a judgment. Make sure that you list all of them.

While the idea is to settle the debt with Capital One so you won’t need to go to court, an Answer protects you from the judge automatically granting Capital One a default judgment.

Responding to your debt lawsuit essentially buys you time to work out a debt settlement agreement.

2. Send a settlement offer

To begin your settlement process, determine how much you can afford to pay Capital One. Remember that Capital One may reject your offer if it’s too low. The bank might decide that a judgment will allow it to collect more money.

An offer of at least 60% of the value of your debt obligation should convince Capital One that you’re serious about settling. For instance, if your outstanding obligation is $2,000, you could offer Capital One a lump-sum settlement of $1,200, or 60% of the total debt.

Send an initial offer to start the debt settlement negotiation process. In your offer, you might say something like:

“I see you’re suing me for [$___] for [case number]. I don’t have that kind of money and I don’t agree with the amount. But I do have [$___] that I can pay within 30 days to settle the debt in full. Let me know if you accept.”

Capital One will consider your settlement offer to determine whether it’s satisfactory to the company. If Capital One believes that you should pay more, the company’s representative will likely counteroffer with their own proposal.

You may go through several rounds of negotiation with Capital One before you reach a settlement agreement.

SoloSettle takes care of the settlement negotiation process for you.

3. Get the settlement agreement in writing

Make sure to get your deal in writing so that you have documentation to rely on if Capital One tries to resume its collections activity or changes its mind.

Here’s a debt settlement agreement example, with a preview attached below, so you know what to look for in yours:

Sometimes, people find negotiating debt settlement overwhelming, especially if they’re facing a lawsuit. When that happens, reach out to the professionals. That way, you won’t have to worry about saying the wrong thing or adversely affecting your case.

SoloSettle can help you manage your debt settlement agreement.

SoloSettle can help you settle your Capital One debt

SoloSettle, powered by Solosuit, is a tech-based approach to debt settlement. Our software sends and receives debt settlement offers on your behalf and helps you negotiate the best deal for your circumstance. Once an agreement is reached, SoloSettle helps you manage the debt settlement agreement documentation and forwards your payment to Capital One for you, helping you protect your personal financial information.

Check out this review from a real SoloSettle customer:

“I'm very thankful for SoloSettle. Having a third party negotiate the settlement was instrumental in resolving this case and saved me from two giant headaches: 1) I didn't have to deal with the plaintiff's lawyer and 2) I didn't have to go to court. I also love that the payment was processed through SoloSettle. I was nervous about sharing my personal financial data with the other side, but SoloSettle protected that for me. I hope I never get sued again, but if I do, I would use SoloSettle again in a heartbeat.”

Now, let’s look at an example of how to settle a debt with Capital One.

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to answer a summons for debt collection in your state

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