italia044 asked:
I have some credit card debt (ranging from 1k-4k) that I want to settle on. I haven’t paid a dime in about 2 years, so I should be able to get pretty low. The only problem is that I want to settle ASAP. I’ve heard people say you can settle for 30% of what you owe. I was thinking of a 40% settlement offer so make it quick and easy without having to negotiate back and forth. Any other info will help. Thanks!
http://1mortgagecalculator.info
I have some credit card debt (ranging from 1k-4k) that I want to settle on. I haven’t paid a dime in about 2 years, so I should be able to get pretty low. The only problem is that I want to settle ASAP. I’ve heard people say you can settle for 30% of what you owe. I was thinking of a 40% settlement offer so make it quick and easy without having to negotiate back and forth. Any other info will help. Thanks!
http://1mortgagecalculator.info
Call them ask how much they will settle for.
that’s up to the credit card agency. you’ve run from them for 2 years, so i’m sure they’ll want it all.
They will never settle for less than the amount of purchases you made.
They will only settle on the finance charges and late fees.
/
contact the collection company that has the account. Offer a settlement but get it in WRITING first before you send them 1 dime and never give them account information as they may sweep your account. Pay up then give them up to 60 days to report 0 balance if not then dispute the report with copies of your payment and settlement acceptance and it will then report 0 balance in the future but hang onto this info for at least 7 years
Unfortunately some of the previous answers are completly incorrect. They will settle regardless of how long it has been and the amount they take varies greatly and can be lower than the amount of your purchases. Most cards that are charged off and sent to collections can probably be settled in the 60-80% range. If sold to a third party, maybe a little lower. You will be lucky to get 50% if it is a major credit card issuer. Your best bet is to try and make a deal in the last few days of the month as that is when the drive is on to bring in as much cash as possible. You will get your best offers and maybe they will pull strings to get you a hardship settlement, but there is a bottom line and 30-40% is probably below it.
The most you can probably settle for is 30%, but your debt amount isn’t very high so this number would be difficult. You can try to do this by yourself, but beware the these creditors are professionals and can be very hard to negotiate with. If you find yourself not getting anywhere you might need to consult with a professional. Since you are less than 10k in debt it might not be worth their time. Although 4k might seem like a lot in credit card debt it is a relatively low debt amount. With a little disciplne I think you will be able to pay off the debt in full. You might need to focus on negotiating for extensions. They might be more willing to do this because they will get the entire amount back. This will have less damage on your credit report than settling.
Hard times are usually good times for debt collectors. But in this recession, perhaps the deepest
in decades, the unthinkable is happening: collectors, who usually
do the squeezing, are getting squeezed a bit themselves.
After helping to foster the explosive
growth of consumer debt in recent years, credit card companies
are realizing that some hard-pressed Americans will not be able to pay their bills as the economy deteriorates.
So lenders and their collectors are rushing to round up what money they can before things get worse, even if that means forgiving
a portion of some borrowers’ debts. Increasingly, they are stretching out payments and accepting
dimes, if not pennies, on the dollar as payment in full.
“You can’t squeeze blood out of a turnip,” said Don Siler, the chief marketing officer at MRS Associates, a large collection company that works with seven of the 10 largest credit card companies.
“The big settlements just aren’t there anymore.”
Banks and card companies are bracing for a wave of defaults on credit card debt in early 2009, and they are vying with each other to get paid first.
So even as many banks cut consumers’
credit lines, raise card fees and generally pull back on lending, some lenders are trying to give customers a little wiggle room. Bank of America, for instance,
says it has waived late fees, lowered interest charges and, in some cases, reduced loan balances for more than 700,000 credit card holders in 2008.
American Express and Chase Card Services say they are taking
similar actions as more customers
fall behind on their bills. Every major credit card lender is giving its collection agents more leeway to make adjustments
for consumers in financial distress.
Debt collectors, who are typically
paid based on the amount of money they recover, report that the number of troubled borrowers
getting payment extensions has at least doubled in the last six months. In other cases, borrowers
who appear to be pushed to the brink are being offered deals that forgive 20 to 70 percent of credit card debt.
In the past, troubled borrowers
might have been able to pay down card loans by tapping the equity in their homes, drawing on retirement savings, taking out a debt consolidation loan, or even calling a relative for help. But with credit tight, consumers are maxed out.
“Knowing that the sources of funding have dried up, having
someone pay the balance in full isn’t a viable strategy,” said Tim Smith, a senior executive at Firstsource, one of the biggest debt collection companies.
ERIC DASH