How to Pay Off Credit Card Debt in a Lump Sum

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Paying your credit card debt in a lump sum can be as easy as making a phone call. You have several options, including possibly paying the credit cards in full for less than the total amount owed. You can also take out a loan to combine the credit card debt into one monthly payment, or you simply can pay the full balance from your personal funds.

Make a payment for the full amount due on your credit cards. Call your credit card companies using the telephone numbers on the back of the cards. Ask for the current payoff amounts on the cards. Authorize the card companies to deduct the full amount due from your checking account. Give the representatives your bank's routing number and account number. Or send payments in full by standard mail before the due dates.

Apply for a bill consolidation loan from your bank or credit union, and use the money to pay off your credit cards in a lump sum. In some instances, the bank or credit union will send checks directly to your card companies.

Ask the card companies for settlement agreements allowing you to pay the debts in full for less than the full amount owed. To qualify for a settlement agreement your credit card accounts must be seriously delinquent--about four months behind. After six months, card companies generally give up on collecting and sell accounts to debt collection companies for pennies on the dollar. Before taking that step, the card companies will usually offer to settle with you for about half the amount owed and often less. You could walk away paying only 20 percent or 30 percent of the balance in a lump sum. You can ask your card companies for settlement offers over the telephone or in writing.