How to do credit card settlement?

To do a credit card settlement, contact your bank to negotiate a one-time payment for less than the total outstanding amount. This is usually possible if you are facing genuine financial hardship and your account is several months overdue. Once an amount is agreed upon, obtain the settlement offer in writing before making the payment. After the payment is processed, the bank will close your account and mark it as settled in your credit report. Note that while this clears the debt, it can significantly lower your credit score.