What Is Discover’s 60/60 Plan? Reduce Your Debt by 40%
Credit card companies like Discover often prefer negotiating settlements over pursuing lawsuits. The 60/60 plan reduces your balance to 60% and gives you 60 months to pay it off, making your debt more manageable. Contact Discover immediately if you're struggling with payments to explore your options before your account goes to collections.
Get Payment PlanWhen you can’t afford your Discover credit card payments, you have options. Filing for bankruptcy might seem like the only way out, but it carries serious consequences. A bankruptcy filing stays on your credit report for up to seven years. During that time, you’ll struggle to secure loans or even find housing.
Settling your debt with Discover offers a better path forward. The consequences are far less severe than bankruptcy. You can protect your financial future while addressing what you owe.
Struggling With Multiple Credit Card Debts?
Don't wait until Discover sends your account to collections. A debt management program can reduce your interest rates and consolidate your payments into one affordable monthly amount.
Lower Your PaymentsHow Discover’s 60/60 Plan Works
Facing financial difficulty with your Discover card? Contact the company immediately. Ignoring the problem only makes things worse.
Discover will attempt to reach you repeatedly about your unpaid balance. If those attempts fail, they’ll likely send your account to collections. A collections agency or attorney might take over your case.
Most creditors prefer to avoid lawsuits. Court proceedings are expensive, time-consuming, and complicated. Discover would rather work with you to recover what you owe.
The 60/60 plan reflects that philosophy. Discover reduces your total debt to 60% of your current balance. You then pay that reduced amount over 60 months through manageable monthly payments.
The logic is simple. Discover recovers more money through an affordable payment structure than through litigation. If you’re drowning in debt, bankruptcy becomes tempting. Once you file for bankruptcy, creditors can’t pursue debts you’ve listed. The 60/60 plan benefits everyone: Discover gets paid, and you escape financial hardship.
Who Qualifies for Discover’s 60/60 Plan
Not everyone qualifies for the 60/60 plan. Discover typically offers it to cardholders experiencing severe financial hardship.
You’ll need to contact Discover if you’re several months behind on payments. Explain your situation honestly and express your willingness to find a solution. Depending on your circumstances, Discover may propose the 60/60 plan.
Credit card companies aren’t required to negotiate settlements. If your offer seems unreasonable, they’ll reject it. Proposing to settle for just 10% of your balance will likely fail.
Don’t let that discourage you from negotiating. Honesty matters most during settlement talks. You need to propose terms you can actually afford. Accepting a settlement you can’t maintain defeats the purpose.
Keep in mind the 180-day threshold. If you miss payments for 180 days, Discover will probably send your account to collections. The collection agency might file a lawsuit if they can’t reach you to discuss payment options.
If you’re struggling with multiple debts, our partner Cambridge Credit Counseling can help you create a comprehensive payment plan.
How to Negotiate Settlement With Discover
Preparation is crucial when negotiating a settlement with Discover. You need to gather documentation and plan your approach.
Document Your Financial Situation
Keep detailed records of your finances. Include all sources of income and your monthly expenses. Document the specific situation that caused your payment difficulties.
Discover will ask questions about why you stopped making payments. They need to understand your current financial position. Sometimes they’ll reject your settlement offer but propose an alternative. They might offer a better repayment plan with lower interest rates instead.
Calculate What You Can Afford
Determine a realistic amount you can pay. Consider both lump sum options and monthly payment amounts. Never accept terms you’re uncomfortable with. You’re responsible for following through on any agreement you make.
Consider Credit Counseling
Attend a credit counseling session before negotiating. You’ll learn about all available options for managing your debt. Attending counseling shows Discover you’re serious about settling your account.
What to Do If Discover Sues You
If Discover files a lawsuit against you, respond immediately. You must file an Answer with the court and send it to the opposing attorney. Failing to respond means you lose by default.
A default judgment allows Discover to garnish your wages or seize your property. Our partner Solo can help you respond to the lawsuit in all 50 states.
Filing an Answer doesn’t mean you admit to owing the debt. It means you’re exercising your right to defend yourself in court. You can still negotiate a settlement after filing your response.
Alternatives to the 60/60 Plan
The 60/60 plan isn’t your only option for managing Discover debt. Several alternatives might work better for your situation.
Debt Management Programs
A debt management program consolidates your payments through a credit counseling agency. The agency negotiates lower interest rates with your creditors. You make one monthly payment to the agency, which distributes funds to your creditors.
Balance Transfer Cards
If your credit score remains decent, consider transferring your balance to a card with a lower interest rate. Some cards offer 0% introductory APR periods. You can pay down your balance faster without accumulating interest.
Personal Loans
A personal loan might offer a lower interest rate than your credit card. You can use the loan to pay off your Discover balance. Then you’ll have just one fixed monthly payment at a better rate.