Offer from HSBC

With that large of a debt and four more years on sol,I would take it as long as everything is in writing. A debt that large is gonna be mighty attractive to a collector or junk debt buyer.So in my humble opinion,a original creditor will be better to deal with.

thats what i thought to. i am waiting on a bounus and they are faxing me docs stating that the offer is good for 90 days

I would take the offer. It surprises me that HSBC contacted you themselves since they usually sell their accounts to not so ethical collection agencies. I have two small credit cards with them that I placed on a debt settlement program. The balances were charged off and sold to outside collection agencies. I have since been making payments to HSBC and they have cashed those payments. One is almost paid off now :-)

I would take the offer also, especially with that big of a balance. Do you know how soon before you get your bonus? Hopefully you will get it before the offer expires.

Be very careful when dealing with HSBC and their subsidiaries! Insist on any arrangements in writing before making payment.

This sounds like a good offer and you probably should take them up on it. However first insist on getting the offer in writing, and also get it in writing that with that acceptance of the offer and payment, the debt is settled and cannot / will not be referred to a collection agency for collection of the remaining "forgiven" balance.

Also be aware that if you accept the offer, once you make the payment you will be issued a 1099C and must claim the forgiven amount as income on your income taxes at the end of the year, assuming it's greater than $600.

Once a 1099C is issued on a "forgiven" debt, it becomes legally un-collectable. Make sure you keep the 1099C where you can find it should the debt mysteriously turn up at some bottom feeding collection agency.

got it..i actually told them it may take 30-60 days for me to get my payment. They said it was okay and they would allow me 90 days...they are being awful nice to me and i just wich i knew why. Didnt hsbc get sued a couple years back

I'm surprised they are willing to wait ninety days. I guess they deal with each account differently so consider yourself lucky on this deal :-) Do as LCW suggested, get everything in writing before you send in payment to them. Make sure they can't sell off the difference to a collection agency. They don't use the most reputable companies. Trust me on that point.