Settlement or hardship...which would be best for me?
Date: Thu, 07/02/2009 - 22:56
I have two accounts (Chase & Cap 1) that got behind due to pay cuts & unemployment. I am waiting on the paperwork to settle with Chase. My CR will state "settled for less than owed".
The other account that I have to work with is Cap 1. They haven't been easy to try to settle with so far. I now have the ability to begin catching the account up if they will keep interest rate low & wave the lates fees, etc. I can likely come up with the funds to settle for about 40% if they ever agree to it. I am confused as to rather I should settle or go with a hardship plan? If my credit is probably not going to tank much more with another settled account, then it seems I should just try to settle. Especially, given the fact that all of my other credit cards have taken my limit down to around $100; making my credit score drop anyway. If my husband's company takes additional downtime during this year, I would not be able to keep paying the monthly payment on a hardship plan. Any advice on which option to work towards?
The other account that I have to work with is Cap 1. They haven't been easy to try to settle with so far. I now have the ability to begin catching the account up if they will keep interest rate low & wave the lates fees, etc. I can likely come up with the funds to settle for about 40% if they ever agree to it. I am confused as to rather I should settle or go with a hardship plan? If my credit is probably not going to tank much more with another settled account, then it seems I should just try to settle. Especially, given the fact that all of my other credit cards have taken my limit down to around $100; making my credit score drop anyway. If my husband's company takes additional downtime during this year, I would not be able to keep paying the monthly payment on a hardship plan. Any advice on which option to work towards?
Quote:If my credit is probably not going to tank much more with
Quote:
If my credit is probably not going to tank much more with another settled account, then it seems I should just try to settle. |
Your credit score will fall further if you do a debt settlement with Cap 1 but, you can again start rebuilding your credit after 2 years. I think that if you cannot afford to pay back the debt in full, you should negotiate for debt settlement in order to avoid lawsuit, which they might bring against you to recover the debt. If you cannot negotiate for settlement, you may register with a good debt settlement company, who will work for you.
