By Admin on Oct 12, 2009 in Credit
Alex Maire asked:
I’ve read a couple of things on the net regarding people negociating their past-due or even charged off credit card debt. Some are paying only a fraction of what they had to begin with!
http://1mortgagecalculator.info
I’ve read a couple of things on the net regarding people negociating their past-due or even charged off credit card debt. Some are paying only a fraction of what they had to begin with!
http://1mortgagecalculator.info
Copyright
There is a page at the source box site that speaks about dealing with credit card debt that should answer your question in detail. To reproduce it here would take to long. When you go to the site check out the free debt management shareware program available.
tt | Oct 13, 2009 | Reply
Well yes, you can, but it’s not always a great idea.
Forgive me if it sounds like spamming when I recommend going to so frequently, but there is so much information there that I could not possibly post in answer to the question of whether it is a good idea to settle or indeed if it’s even necessary. (For example the debt may be out of statute).
clawedlemew | Oct 15, 2009 | Reply
The companies that sponsor these debt settlement opportunities begin by telling you not to pay your bills so you become a deadbeat and they get the creditors to agree to take some money instead of none. Well, (a) your credit becomes as messed up as if you were to file bankruptcy and (b) the companies make a serious chunk of YOUR money for the service. While it sounds good in theory, it’s not a wise thing to do. Your best bet is to contact a legitimate consumer credit counseling agency that can work with you on debt repayment instead of debt management. As a voluntary program, you look more responsible with credit and can rebuild your credit sooner and faster than defaulting on debts and being written off while the settlement company prospers from your money. Check out a legitimate debt counseling plan first:
RAY | Oct 16, 2009 | Reply
hi there;
Unless you are in dire straights (job loss or unable to work) it is never a good idea to go the charge off route. The long term effects on your credit rating (future jobs, renting an apartment, applying for education loans or car loans) can be devastating. It is not worth the bad credit score it will cause and will take years to repair your score.
If you are in trouble with a credit card then the very best advice is to contact that company immediately and tell them straight what is going on. Credit companies do not want to pay collection agencies to get their money for them. They would rather that you negotiate a pay back plan. As for paying half of what is owed that is a joke.
A solid stragedy is to STOP USING THE CARD IMMEDIATELY.
Make two payments each month.
One being the minimum payment due on time.
Two weeks later pay another minimum payment plus 50% of what the minimum is.
Do not use the card, place the card in the darkest corner of your closet where only spiders and dust bunnies lurk. Leave it there for a year or until you have paid down your debt to where you owe only 1% of what your total credit line is for the card.
Never, ever allow yourself to exceed more than 35% of your total credit line as a balance owed. If you are exceeding that window of debt then you will end up with more head aches than its worth.
Most of the cases that are only “paying a fraction” are those that have, or are about to, file for a bankrupcy.
snowelprd | Oct 18, 2009 | Reply
I personally would never tell someone to not pay a credit card bill purposely. To answer your question, yes – I have seen it …..35 cents on the dollar for a $35,000 credit card bill. What you need to know, beyond what the others have said, is that each credit card company is different. Some settle after 14 days past due while others give a price break at 120 days.
CALIFORNIA GOLD | Oct 18, 2009 | Reply
The fact is these ads about cutting 60% of your debt are way overblown. It may happen occasionally but not all the time. And there are hidden catches….tax liability if they file a 1099c….continued negative information on your report (they can show you settled for less), dirty tricks by the agent (sell the balance to another collection agency)….
Before you start negotiating, do you homework. I agree with a previous responder, check out as this site contains tons of treat info.
Studly | Oct 20, 2009 | Reply