When should I make a debt settlement offer or mentioning it?

Date: Tue, 05/05/2009 - 00:27

Submitted by tadams14
on Tue, 05/05/2009 - 00:27

Posts: 23 Credits: [Donate]

Total Replies: 6

I stopped paying my credit cards recently. The first missed payments were due on about 3/17/09. I have been flooded with phone calls from Chase, Discover, Citi, and BofA. I answer some and ignore the rest. I tell them the same story everytime....paycut, wife's on disability, new baby......and that mortgage and feeding my family is my priority right now. The reps have been very friendly and understanding although I did have the rep from Discover try to get me to say that I was looking into bankruptcy which I replied that I was doing all I could to avoid it.

I am hoping to settle the loans at 40% with lump sum payments. When is the best time to offer a lump sum settlement? I have a letter written up for it; however, I don't want to send it too soon.

Any advice would be greatly appreciated. Please give a good strategy with a timeline to deal with this.

Thanks

Mostly the creditors settle the debt if it is past due for 90 da

Mostly the creditors settle the debt if it is past due for 90 days and more. They generally agree to settle the debt if they consider the debt as a bad debt and think that they will not be able to recover it.

Quote:

Discover try to get me to say that I was looking into bankruptcy

They asked you this question, because I think that if you have told them that you may file bankruptcy, they would have offered you a settlement.

lrhall41

Submitted by SC on Tue, 05/05/2009 - 03:48

( Posts: 3937 | Credits: )

is it better to attempt to settle with credit card company after

is it better to attempt to settle with credit card company after 90 days or wait till it goes to a collection agency? is there a good magic number of days late before it is too late?

lrhall41

Submitted by tadams14 on Tue, 05/05/2009 - 21:01

( Posts: 23 | Credits: )

I think that the creditors will call you up for a settlement pla

I think that the creditors will call you up for a settlement plan themselves if the account is past due for over 90 days. However, if they do not call you for the debt, you can call them up and negotiate for settlement. Now, if they sell it off to a CA, you can easily settle the debt for 40% of the outstanding amount.

lrhall41

Submitted by SC on Tue, 05/05/2009 - 22:17

( Posts: 3937 | Credits: )

It is true that you can settle the debt for less, but if you fai

It is true that you can settle the debt for less, but if you fail to pay for 90 days, the account will be considered delinquent. The delinquent account will be reported to the bureaus and will affect your score.

lrhall41

Submitted by on Tue, 05/05/2009 - 22:23

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I know that I am going to take a hit on my report so that is not

I know that I am going to take a hit on my report so that is not a suprise. But approximately when does the credit company sell to a collection agency? And when that happens and I settle with the CA, can I still have them reflect "paid as agreed" on my credit report or can only the original creditor do that?

lrhall41

Submitted by tadams14 on Thu, 05/07/2009 - 08:39

( Posts: 23 | Credits: )

I am on a similar time line as tadams14. I stopped paying in Mar

I am on a similar time line as tadams14. I stopped paying in March. I have heard the best time to settle is between 150 and 180 days after the 1st missed payment date. They charge off at 180 days. The end of the month is also a good time to settle. I will know more in about 2-3 months. I welcome any comments on this strategy.

lrhall41

Submitted by on Sat, 06/06/2009 - 02:08

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