How To Settle Debt - Credit Card Debt Settlement

Best Way to Settle Your Credit Card Debt FAST:

Do It Yourself Debt Elimination Debt Settlement

I have had a rough year filled with the birth of my daughter,several surgeries, my work closing abruptly, and my husband leaving me. In this last year, I have used my credit cards to pay for bills, food, gas, baby supplies, basically they were my crutch. As soon as I get them paid off I am cutting them up and never opening one again…..

…In the mean time, I need some help or advice from someone who has had maxed out credit cards before and settled with companies….

I have a maxed out target credit card with a limit of $6,000, and $500 and growing in fines. This is my second time maxing it out, I paid it off in full the first time.

I also have a Discover credit card with $3,000 limit, and $200 in fines.

I haven't paid on either of these in over 4 months.

When I get my tax return and financial aid check from school, would either of these just accept half of what I owe them if I offered it to them in whole? Would Target just accept $3,000, and consider it good?

I've never done this type of thing before, but I have a friend who said that her mom has done it several times, and I'm just thinking it's something to look into, and debt advice would help.

Thanks..
Target calls me every 3 days or so. They are trying to get me to work out sometype of payment plan, and there's one that lowers the payments for 6 months, I could afford that, and by that time it will be tax season.

Discover doesn't have my vurrent phone number, but I'm sure if I gave them small payments of some sort, they can't turn me over to collections as I would be trying to make payments. Thanks for the advice!

If you are already 4 months late both of the accounts are probably no longer with Discover or Target but have been "Charged-Off" and sold to a Collection Agency. If they have not been yet, by the time you get your Tax Return they will be. So you are going to have to find out who you need to deal with. Most likey they will be contacting you.

When you do find out you NEVER talk to them by phone, only through mail. This way you have proof of what was said. Now, 50% is a reasonable offer and if you can come up with that in a Lump Sum payment the chances of them taking it is very good. To do this send them a letter stating that you pay x dollars, they will then consider the debt settled. You also want to add that they will remove their collection account from your credit report. Do not sign this letter only type your name. Send it by Certified Mail with Return Receipt. Only after you receive something in writing from them that says they accept it do you send any money.

One other side note is that since you will be settling for less the difference between the settled amount and the account balance will be reported to the IRS as Unearned Income. You will receive a 1099-C at the end of 2009 for your taxes. The tax amount is based on your tax rate but even at the highest rates will be less than the amount you settled for. You just need to be sure it is paid or you could end up with additional fines and interest from the IRS.

After recovering from being very ill, I’ve got 40K in credit card debt spread over 4 credit card companies. I’m better now but no longer able to work.

I’ve got 18K in cash and receive just enough disability to pay my basic living expenses. I’d like to settle my outstanding cc debts with the 18K or less rather than file bankruptcy.

Am I dreaming to think all the credit card companies would agree to split up the 18K appropriately and agree to all debts settled in full?

If not a dream, how best to make this happen? Should I hire one of the firms I see advertised on TV out of the 18K or is there a way I could just do this myself?

First of all, if you are disabled and can not work, you are then considered “judgment proof” (until you return to work) so they would get nothing by going to court.

Second, if you are receiving SSDI, they can not touch your income either. They could come after that 18K if it is not income from SSDI or SSI or workmans compensation. So your best bet is to do it yourself.
Contact them and try to work out a settlement. If you are on SSDI then they know they can not get anything and will just charge off the debt. It will remain on your credit report for 7 1/2 yrs from date of last known delinquency (Running of Reporting Period - Section 605 [15 U.S.C. § 1681c]
You could wait them out and once they sell the debt to a collection agency who will buy the debt for pennies on the dollar, you can then make a lower offer seeing as to how most collection agencies buy the debts for pennies on the dollar.

Avoid those TV scams, many will just take your money and do the same thing,

Hope this answer is of help to you
LEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice