5 Responses to “I’m in serious debt and need help getting out of this mess. How do I settle Credit Card debt myself?”

1. timothy p
   November 26th, 2009 @ 1:31 pm

   when they raise your rates you have the option to "opt out" of the new rate. You usually only have 30 days to do this though. It sounds like that has passed.

   If you have missed 4 months then your credit is likely trashed anyway. Keep in mind that interest and penalties are continuing to accrue. You could call them and tell them what you are able to do. They will either settle, sue you or sell the debt to a collector who will settle or sue you. Contact the credit card company and try to work something out. If they sell it to a collector, read the fair debt collection practices act. Good luck.
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2. CatDad
   November 26th, 2009 @ 2:14 pm

   You’re getting right at the point of the card being charged-off…this usually occurs after 5-6 months of non payment. Do whatever you can to prevent this from occurring as it really damages your credit rating and when it happens the damage is done and there’s no undoing it.

   After being 4 months past due you should be in a position to offer settlements in the 20 - 50% range…the problem here is that you usually have to have a one-time, lump sum saved up….They usually aren’t in the mood to accept settlements if you can only pay small amount per month over several years. If you do have money saved up to offer settlement in this range, then try this…be sure to get the terms IN WRITING BEFORE you pay them.

   If you do not have the money to offer settlement, then the only realistic option is to enter into a debt manangement plan with a non profit like CCCS. Contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS). They can negotiate reduced interest and payments. They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to "enrolled in debt management." This does not damage your credit, but it may make it difficult to obtain new credit while you are enrolled in their program….so don’t use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would might be denied while you’re enrolled in the CCCS debt management program…

   Stay away from any "debt consolidation" company that promises to cut your debt in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements.
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3. drive_55_not
   November 26th, 2009 @ 2:35 pm

   At this point you can negotiate with the card issuer yourself, as you’ve pretty much proven you have no intentions of making a payment, they should listen,

   Its better for you to work with the original creditor, Don’t low ball them too much,, If it’s possible, offer to pay $200 month for 48 months and tell them to close the card,, Depending on which one is it, they’ll likely take it, or at worse agree to 200 for 60-months,

   Be warned, if you do get them to agree you’d better not miss another payment as that would render your agreement void and the calls will start again,

   Good luck,
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4. Jimmy
   November 26th, 2009 @ 2:51 pm

   Ask lenders for agreement to delete this items from your credit report when paying them. I recommend to get such agreement thru credit repair agency, for example this one - creditreport.imess.net
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5. vicente
   November 26th, 2009 @ 3:04 pm

   Girl if that debt includes( credit card, personal, medical, and even buisness debt)you need to check out this company DEBTFREELEAGUE.COM and call this guy Junior at 1-800-213-9968 EXT 112. I owed around 30,000 and ended up paying off all my accounts at 11,589 in less than 24 months. So i would definatly recommend anyone who wants to pay a fraction of your debt and pay a lower monthy payment to contact this guy junior he is a life saver and a stand up guy…
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