Minimal ding on credit
Date: Wed, 05/12/2010 - 22:21
I work for a loan mod/debt settlement company. The debt consolidation guy there has offered to help me wiu my credit problems free of charge (I agreed to take him out to dinner). He told me that I could stop make my payments for 90 days and then call the credit card companies (FIA Card Services and Citi) and negotiate a lower payment, either in a lump sum or in three payments. This payment would be around 25% to 40% of my total due. In this deal I would also be negotiating to remove the negative reporting to the credit reporting agencies. He told me that I could attempt to work on Discover Card and American Express later as these companies are more difficult to work with.
Is this true? I don't want miss my payments for three months and hurt my credit and find out that I cannot negotiate my debt. I think I just need a second opinion on this technique before I attempt this. Thanks.
Is this true? I don't want miss my payments for three months and hurt my credit and find out that I cannot negotiate my debt. I think I just need a second opinion on this technique before I attempt this. Thanks.
What he is talking about is debt settlement. He is somewhat righ
What he is talking about is debt settlement. He is somewhat right, though there is no guarantee that the creditor would agree to your settlement offer but your score would be shot in this process. Additionally, a chance of getting sued by the creditor is also there when you stop paying. You can search the site for more information on different types of debt elimination methods. Read and make an informed decision.
