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Posted: Sat Feb 09, 2008 8:53 am Subject: CC advice

Ok I have roughly 5,000 in CC debt. The CC company called me and said they could put me on a 5 year program to pay off the debt at $86 per month min. With no late fee and a rate of less then 1%.

My current finance is 28% on the card and the min payent is $115.

I'm currently waiting for a $2,000 tax return.

I'd like to use this tax return to help pay off the CC. But i'm not sure exactly what I should do here.

Should I go on the plan and then use the 2K to pay it off or not go on the plan, and just use the money?

Should the money go toward the principal?

Thanks

Posted: Sat Feb 09, 2008 9:06 am Subject:

I would take the payment plan, use your tax return to help pay if down if you can do this and get the debt paid off as soon as possible.

Not knowing your entire circumstances, maybe you could use your tax retrun and settle the debt? Just a thought.

Posted: Sat Feb 09, 2008 9:09 am Subject:

If I were getting that much back I would try to pay off as much debt as possible that way you are just one more step closer to being debt free that is just my opinion..

Posted: Sat Feb 09, 2008 9:34 am Subject:

Welcome to the Community Very Happy

What I started doing last year was, paying down and off on my cc debt. Now I am out from under that and have that much more money a month in my wallet.

I looked at it as, I may like to have that money to spend, but if I get the debt payed off, I have whatever I was paying them a month extra--and the feeling of being out from under relieves a lot of stress!!

Whatever you decide to do--good luck--we are here to support you and answer questions!!..KAren

Posted: Sat Feb 09, 2008 9:55 am Subject:

Well I'd like to use the intire $2000 for my credit card. Should I just come out and tell the CC company I have the money and hope they will let me settle the intire debt using the $2000???

Posted: Sat Feb 09, 2008 9:59 am Subject:

I wouldn't tell them I had the money--they may want more, or think you can get more.

If you are wanting to do a settlement with them, you could offer them the $2,000. as paid in full. But, don't do anything without getting it in writing. Just remember it will affect your credit as a paid for less than owed, or something to that nature, if you aren't carefull..

Posted: Sat Feb 09, 2008 10:09 am Subject:

So just offer to settle the debt with the $2000? As far as getting the agreement in writing, I'm told they dont have to and in most cases wont, then what?

Posted: Sat Feb 09, 2008 10:57 am Subject:

Here is a link where you can get some sample letters to settle an account: http://www.debtconsolidationcare.com/letters/. This way you will have it in writing that they have agreed to settle.

Posted: Sat Feb 09, 2008 11:27 am Subject: CC Advice

I am assuming you have been late on this CC and that is why the rate is so high? If so, if it were me and I had no other debt and I wasn't taking away from my necessities, I would offer to settle for 2k. If settling would take food away from the table-then I would accept the payment plan and just pay as much as you possibly can to it each month.

Good luck to you. I wish I was offered such a low rate like that. I sure wouldn't be in the pickle I am in now! Smile

Guest · Posted: Sat Feb 09, 2008 12:00 pm Subject:

Yes it is so high because of being late and not paying the min...only because the mortgage and car payment come first. I actually received $4000 for tax return. The other $2000 grand went to pay off my wife cc.

I'll call Discover card and see if we can agree to a settlement.

Thanks for all the suggestions. I'll keep my eye on this thread over the weekend for any other advice before I call them Monday.

Posted: Sat Feb 09, 2008 1:17 pm Subject: CC advice

You got the right thinking. Best of luck to you. Discover is a card I owe as well. I would be interested to see what they say. Please keep us updated.

Guest · Posted: Sun Feb 10, 2008 6:02 pm Subject:

I'm dealing with Discover right now, they will not settle with you until you are 90 or more days delinquent. They will tell you they do not settle, but I know several people they have settled with later on. They typically do not charge off for 210 days. You should not talk settlement until you are 90 days past due, and don't make any minimum payments because if you do, they will not settle with you. They sometimes send out settlement letters for 40% after you are 90 days past due - that would be the $2,000.

Guest · Posted: Sat Feb 16, 2008 9:39 am Subject: Update

I spoke with DiscoverCard this morning. In the last week they offered two programs. Both in which I can not use my CC. I mentioned the settlement to them and they told me that, that would be my last option because the remaining amount that I did not pay would show up on my Credit report for x amount of time.

Last may was the first time i fell behind and stopped making the min payments. In oct and nov, I came up with extra cash and payed roughly $700 for those two months. Since then I've only been able to pay $50 which is well under the min payment.

If I were to settle with them, I dont want any more damage done to my Credit. 1 year ago, I had excellent credit, and now I'm afraid to even look at what it is now. Putting my 17 month old son in Daycare last April is what killed us. We pay $1500 per month. Sad

At one point we were 3 months behind on our mortgage and most other bills. We did manage to get current on the mortgage.

So what exactly should we do here? I have $2000 that I want to use to help pay my Discover card. Should I just not pay my min payments, hoping they offer to settle or opt for the one of the two programs they offered to me?

Btw, I'd like to be able to use the CC for emergency down the road if one should occur.

Posted: Sat Feb 16, 2008 11:03 am Subject:

The first time you settle an account it would hurt your score up to 150 points. Also if your settle you will not be able to use that card ever again and it's unlikely that you would get another account with that creditor for a long time.

Guest · Posted: Sun Feb 17, 2008 1:45 pm Subject:

Yes it will hurt your credit if you settle, but it sounds like your credit is already suffering. At least if you settle it will be behind you and 18 months from now it won't matter and your score will begin to rebound.

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