I owe $14,000 in CC, have $10,000 cash on hand
Date: Fri, 03/26/2010 - 20:29
I would like to try to turn this 10k into a zero CC balance. Right now, most of my cards are current. My creditors are Chase ($2400), BOA ($2,000) Citi ($6,000), Household ($1000) and Discover ($3000).
Amongst the five I would need to average about a 70 percent settlement. Should I immediately stop making all payments and wait 30 days?
They will not negotiate with you until you are at least 60 or 90
They will not negotiate with you until you are at least 60 or 90 days past due. If you are not that concerned about your credit and are more focused on paying off the balances, then you will get the best deal waiting 90-120 days to negotiate with them. I have gotten settlements in the 15-20% range on some accounts.. I would never settle for more than 40%.. but that also means sacrificing your credit score.
settlements should be around 30-40% but keep in mind this is onl
settlements should be around 30-40% but keep in mind this is only for people that absolutely need it. it will trash your score, your cards will all be closed, an cards that you dont settle will either close your accounts, lower your available credit or take your interest rates to outerspace. i am a big firm believer in settlement when its needed. just keep in mind that there are long term effects that will haunt you for a very long time. but if you really need it you should be able to settle all your accounts for that amount but you will have to wait it out let them all become late an then negotiate. keep in mind also that there is a chance that they can sue you in court too. but if done properly an quickly you can usually avoid this.
info to help & info to know
Quote:
Originally Posted by love_my_things settlements should be around 30-40% but keep in mind this is only for people that absolutely need it. it will trash your score, your cards will all be closed, an cards that you dont settle will either close your accounts, lower your available credit or take your interest rates to outerspace. i am a big firm believer in settlement when its needed. just keep in mind that there are long term effects that will haunt you for a very long time. but if you really need it you should be able to settle all your accounts for that amount but you will have to wait it out let them all become late an then negotiate. keep in mind also that there is a chance that they can sue you in court too. but if done properly an quickly you can usually avoid this. |
please, refrain from listening to the moderators here that try to talk you out of anything that isnt debt consolidation care, they dont know much.
if you dont care about your credit score for the time being, go late and settle your debt SAVE MONEY, you will be fine with 14k of debt, try to settle at less than 50% to save more money in your pocket.
if you have 10K youll be fine.
so lemme get this straight. you are $4000 shy of paying your car
so lemme get this straight. you are $4000 shy of paying your cards off in full, yet you wanna trash your credit score and have the possibility of being sued just to get a settlement?
gotta also remember that after all is said and done that $14k could quickly become thousands more in late fees, interest and over the limit fees (if they drop your limit where the late fees push you over the new lower limit).
why not put that $10,000 on citi, discover, household and then use those minimum payments to pay off the other 2 over the next year?
not worth it imho if you are just $4000 shy.
I agree with Blackbeasst. You are so close to having enough to
I agree with Blackbeasst. You are so close to having enough to payoff all creditors. I had $50,000 cc debt and limited cash so made sense for me. It has been a tough road and now my credit is bad.
You may want to think hard about this.
Dont trash your credit for 4k. Go find the 4k and get a better c
Dont trash your credit for 4k. Go find the 4k and get a better credit rating. This should be a no brainer decision unless your 89 years old or terminally ill, however if you are a young person. Credit is king in the USA.
I agree too, if you have $10,000 to pay on cc, pay off the large
I agree too, if you have $10,000 to pay on cc, pay off the large cc, and work on the little ones, plus if you pay those off, you may qualify for a lower interst rate, the you can move the remaining cc to a cc with a lower rate.
Personally, I'd pay off the higher interest rate cards first. T
Personally, I'd pay off the higher interest rate cards first. Then look to consolidate the other cards to 1 card that allows you 0% interest on balance transfers until the transferred amount is paid off.
If none of your cards offer 0% on balance transfers find a new card that does and transfer the remaining $4000 to that one.