I have about $5000 in credit card debt (between 4 cards). How do I go about settling with each debtor for a % of the total amount owed on each card. Since it is tax time I just want to get rid of this debt and start fresh. Would settling bring up my credit score any? I need help? What would be the best way rid this debt!!!
I recently lost my job to downsizing.
If you settle be ready to pay right away.
Once you make that offer, they want their money fast.
They will remove some late fees, and interest charges, but you still have to pay for your purchases and some interest.
So if you have a lot of late fees - you can settle for less.
Go for 50% of the bill to start, and haggle.
And yes, settling, paying them off will make your rating skyrocket.
As long as you are not talking about collection agencies, just cc companies.
People that have top credit are those that charge things and pay the bill in full when it comes in. Never go over 30% of your available balance in any card.
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on Aug 5th, 2009 at 11:30 am
If you settle be ready to pay right away.
Once you make that offer, they want their money fast.
They will remove some late fees, and interest charges, but you still have to pay for your purchases and some interest.
So if you have a lot of late fees - you can settle for less.
Go for 50% of the bill to start, and haggle.
And yes, settling, paying them off will make your rating skyrocket.
As long as you are not talking about collection agencies, just cc companies.
People that have top credit are those that charge things and pay the bill in full when it comes in. Never go over 30% of your available balance in any card.
/
References :
on Aug 5th, 2009 at 11:59 am
I think that if you settle for a percentage it shows that on your credit as a negative. I personally would continue to pay the debts until they were paid in full. I recommend you talk to a credit counselor. I found this website:
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm
Lots of good, reputable information there, including who to go to if you still need help. Good luck! I know the feeling.
References :
on Aug 5th, 2009 at 12:18 pm
Not all credit card companies are just gonna take a % and call it a day, you spent the full amount and you may be on the hook for the full amount. If you are delinquent and have been sent to collections then it may be possible, but I don’t see why they would settle for a lower amount then what you spent.
References :
on Aug 5th, 2009 at 12:48 pm
Settling credit cards, although might be convenient for you if you have the lump sum for it…is REALLY bad for your credit. It’s going to stay on your credit report for YEARS. Just use your tax refund to help you pay off the credit cards and keep paying it off. Don’t just pay the min balance, pay what you can from each paycheck and STOP using them.
Pay off the one with the highest interest first, and then go from there. And don’t get any more credit cards.
References :
on Aug 5th, 2009 at 1:16 pm
If the cards are like 6 months delinquent, professionals could help you get the best possible settlements.
References :
http://www.totaldebtsolutionsllc.com
on Aug 5th, 2009 at 1:38 pm
Debt settlement is a fantastic option for someone who can no longer manage their debt. Most creditors will not consider a settlement until you have been delinquent, which will show up on your credit report. Therefore, you need to decide what is more important, getting rid of your debt or having a great credit report. If you are several months delinquent, your creditor will definately consider a 50% settlement offer, especially if you send them a hardship letter. Any settlements below that should be done by a certified debt arbitrator. Otherwise you may want to consider the payment program offered by CCDR.
References :
http://www.kgdebt.ca