What should I know about dealing with credit card debt to barter down for settlement.?

It depends on whether this is an active, current credit card or a defaulted credit card debt. If it's an active account, the credit card company is unlikely to agree to a settlement for less unless you have some permanent change of finances, like medical disability. If you are able to negotiate a settlement, it will be noted on your credit report as a charge off/settled -- a negative. You will also receive a 1099 for the forgiven portion which will have to be included on your income tax return.

If this is defaulted credit card debt, make sure to get the settlement in writing BEFORE you pay a penny. Do not give collectors direct access to your bank account. Generally, if the debt is over 3 years old, offer 25%; 2 or 3 years old, offer 50%; less than 2 years, offer 75%. Lump sum gets the best deals. Payment plans have to be very short term.

Paying off defaulted accounts will not improve your score. The damage is done and will remain the balance of the 7 year reporting period, whether paid or not. However, creditors look at your entire credti report, not just the score. Paid old debt always looks better.

It would depend on the age of the debt. They will try to scare you. Just remember this. If they are rude hang up, If they say anything its a lye. Most collection agents will settle for 50 to 25 cents on the dollar. ALWAYS GET IT IN WRITING, before you give them anything. NEVER GIVE THEM ELECTRONIC ACCESS TO YOUR ACCOUNT. They will take everything if you do. It is against the law for them to harass you. They shouldn't be calling you more than once very two weeks. If they do just hang up. There isn't much they can do until you are sued and that may take years. You have time. If you don't like there offer then wait. they'll come around. Good luck.

They are under no obligation to settle and, if you are current on your payments, they most likely won't settle.

Settling on a credit card is an alternative to bankruptcy. If you are way behind on your payments and near bankruptcy, the credit card may settle. If not, they won't.