How to settle a credit card bill?

To settle a credit card bill, you must contact your card issuer to negotiate a reduced lump-sum payment. This process is typically a last resort for those facing severe financial hardship. You should submit a formal letter explaining your situation and request a settlement. If the bank agrees, they will provide a written agreement outlining the settled amount. Once you pay this amount, the account is closed and reported as settled to credit bureaus, which will negatively impact your CIBIL score for several years.