anyone having experience in settling credit card debt please send any advice you have?
Posted on | September 30, 2008 |
Best Way to Settle Your Credit Card Debt FAST:
Do It Yourself Debt Elimination Debt Settlement
I currently have $30,000.00 plus credit card debt and would like to settle and pay them off in the next month. I will have a lump sum to work with and am hoping they will accept 50 to 75 cents on the dollar. I have medical problems and work on commission only. Because of my health, not knowing how much longer I can work with my condition, I can't consolidate and make monthly payments. My plan would work best for all. I just need some advice on how to communicate best with the creditors.
As long as your credit card is significantly past due (6 months or more) and currently in collections then you should be able to settle your debt for less than what you actually owe. However, your credit report will reflect the debt as settled so it will warn future creditors that while you did make an attempt to pay the debt you didn't pay what you actually owed. This will hurt your credit score but over time you could repair your credit. However, if your account is currently not past due then the company will most likely refuse to settle the debt. The only reason companies offer to settle is because the account is already late and they are making a last ditch effort to get some of what they are owed.
What are some of the right way to settle my credit card debt?
Comments
4 Responses to “anyone having experience in settling credit card debt please send any advice you have?”
Leave a Reply
January 18th, 2006 @ 9:16 am
first of all, credit cards are unsecured debts–you theoretically don't have to pay them and there's nothing they can do about it. however, it will damage your credit. it does look better when you do pay them. when they call, you can tell them that you will pay it next month and not to call you again until then. if you know for sure when you are getting the money, you can write a check for them and post date it for when you'll have the money in the account. that way, they will have proof that you'll be paying them off. you can consolidate your debt through a debt consolidation company, but if you have the ablity to pay everything off, then do it that way. it will take 7 years to have this debt removed from your credit report. the sooner that you can pay it off, do so. just don't let them push you around or threaten you.
References :
January 18th, 2006 @ 3:50 pm
As long as your credit card is significantly past due (6 months or more) and currently in collections then you should be able to settle your debt for less than what you actually owe. However, your credit report will reflect the debt as settled so it will warn future creditors that while you did make an attempt to pay the debt you didn't pay what you actually owed. This will hurt your credit score but over time you could repair your credit. However, if your account is currently not past due then the company will most likely refuse to settle the debt. The only reason companies offer to settle is because the account is already late and they are making a last ditch effort to get some of what they are owed.
References :
January 22nd, 2006 @ 7:11 am
If you have a house with some equity just get a loan from your bank. You can deduct the interest on your taxes.
References :
January 24th, 2006 @ 5:37 pm
Best way to communicate with them is to contact them advise them you are interested in settling the debt and see what they offer you first. Don't make the first offer b/c most of the time (especially is the debt is older (4-5 yrs) and in a collection agency) they will settle for 50% or lower. Make sure you get all agreements in writing before you set up payment.
References :