Debt settlement

Date: Wed, 06/30/2010 - 22:24

Submitted by anonymous
on Wed, 06/30/2010 - 22:24

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Total Replies: 1

I have a number of credit cards and a shrinking paycheck. I do not have any late payments at all but would like to negotiate with the credit card companies now to settle the debt before I begin to have late payments. Does this put me in a better or worse negotiating position? Thank you.

As you have more than one credit card, and you haven't defaulted

As you have more than one credit card, and you haven't defaulted on any of the cards, you can consolidate your debts. If you want to settle your debts you will have to first default on your payments. Thus, your credit score will be hurt.

‎However, you don't have to default on your accounts for consolidating your debts. Debt consolidation does not hurt your credit score like debt settlement. To consolidate your credit cards, do balance transfer. You can transfer balance from all the high interest cards to one such card which offers 0% balance transfer. Thus, your monthly payments will be lowered. You should try to pay off your debt within the 0% balance transfer offer. Else the outstanding debt amount will increase.

lrhall41

Submitted by SC on Thu, 07/01/2010 - 02:11

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