What is a good starting point. . .

Depends on credit card company and type of hardship you have. What is your credit card co.?

Add-up all your expenses towards family maintenance and other debt obligations like-mortgage, student loans, auto, and subtract the total amount form your income to find the residue. Then decide the comfortable amount that you can offer to the creditor towards settlement. Meet you creditor or call them up and explain your financial situation to them, but its important to convince them that you are willing to pay-off the debt and want to remove the negative entries from your report.

If you have been regular with your card payments, the chances are high that the creditor will be willing to work towards the settlement.

You need to be about 120 days delinquent before they will negotiate a 40% to 50% deal. They count lates from the second payment missed is 30 days - I talk to them every month and am not getting closer to settlement at 120 days.

They will report you as "settled for less" which is a negative, but when you have been making your payments, that is a negative too. In about 12 months your credit will improve.

Thanks for the advice. . .

The company in Providian, who was bought by WaMu.

I have been a customer of theirs for 8+ years. I have never been late with a payment until 2 months ago, when I missed my first one. I payed up and got caught up the following month (they called and told me that it would not affect my credit as long as I payed the overdue plus what was due the next month). But now they jacked up my interest rate to 26% and my minimum due is now more than my car payment. I can't pay what is due next month ($390 minimum!!!!!!). My credit score usually hovers around 660-690, and I hate to see it go down the tank. I would love to be able to negotiate with them myself, but I don't know if I will be able to do it. I want to pay what I owe, but just cannot meet their minimum payments anymore.

jmaddock1,

I had a Providian credit account about 5-7 years ago. It went into collections and was written off/sold off. I paid off the collection agency but took a big hit on my credit score.

I would recommend you apply for a 0% card and transfer the balance fast if you can. An inquiry on your credit report is much better then a deliquency.

If that doesn't work try a signiture loan at a credit union. At least you won't have to pay the 26%+ interest.

As a last resort get into a credit counseling service. You'll take a hit on your credit with a counseling service but at least you may be able to reduce the monthly payment and/or interest rate depending on the card.

Good Luck!

dcmarsh2000-

the transfer of the balance to a 0% credit card is good in thought- I actually just got an offer from Bank of America. I sent it in for the balance transfer, and they sent me a brand new credit card: with a $500 balance and a note saying they could not approve the larger (11K) amount for the transfer.

*sigh*

Needless to say, I called and immediately cancelled that card. It's a good thing if it works. Unfortunately, I am not lucky enough to get it approved for that amount!!!

I would be careful about taking out a loan to pay off a credit card. A credit card is an unsecure loan and if you take out a loan, manytimes you must put up colleteral, like your house or car. Then that loan is a secured loan which means they can now go after the colleteral.

Just be aware of this.