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How low to start negotiating?

Date: Thu, 10/01/2009 - 11:28

Submitted by anonymous
on Thu, 10/01/2009 - 11:28

Posts: 202330 Credits: [Donate]

Total Replies: 2


I am currently 3 payments behind on all my cards and the companies are now bringing up settlement as an option. This morning the lady at Chase said they'd take a few thousand off the balance (~23k and 7k) of the two cards which is a joke in a lump sum or up to 4 payments. I have two other companies I'm late with as well. The lady said talk to family/friends to see what I could come up with to settle and call back with that number.

My plan is to tell them I can only get $XXX to work with among you and the other companies; first come first serve. I will have to borrow $ from friends/family anyhow to do this so it's certainly not a lie. How low should I start? If they know I have other debts and they may not get paid at all, I'd think they'd be more willing to accommodate a lower settlement. I know Chase and BOA are both fairly easy to work with and my third (Elan) I'm not to sure about. Is starting at 15% a good basis knowing 20-40% is likely more realistic?


Growing up, my mother always told me that if I didn't ask I would never know. You are on the right track. Settlements depend on a number of factors. It is about finding a middle ground between what you can afford to pay and how much the creditor is willing to write off. You can offer 15% and explain why that is all you can pay. The worse thing they can do is reject it, and you will be no worse of for making the offer. Hopefully they will make a counter offer and now you have the parameters to begin negotiation.


lrhall41

Submitted by Damon on Fri, 10/02/2009 - 08:59

( Posts: 80 | Credits: )