confused - credit card debt
Date: Mon, 10/11/2010 - 12:29
Today is the first day that I've been to this website and looking at my options. Am I correct in reading that before one can start talking debt settlement is if you're late on your payments? Am I correct in thinking that there is a certain strategy to let credit cards go late, then work out a settlement for ~40% less? whats the negative on this, just a credit score? can you get sued?
i'm confused if they'll do anything if you're in 'good standing' and not have a late fee, just a high balance.
thanks.
They wont do anything unless you are past due which in turn is g
They wont do anything unless you are past due which in turn is going to tank your credit scores big time. Depending on the creditor, there is always a possiblity you could get sued.
You could ask your cc companies to enroll you in a hardship plan
You could ask your cc companies to enroll you in a hardship plan. Many offer this and they will reduce your interest and/or lower your monthly payment. If that's not available to you or you would prefer to settle the accounts you can go the other route of skipping payments, getting behind, banking the money you're not paying and then trying to settle the accounts. Basically, it's a "strategic default."
nomonry, you are correct, you must be late. I just settled mine
nomonry, you are correct, you must be late. I just settled mine and you can search for my posts and follow my progression.
If you aren't late and just called and told them you wanted to settle then they will think you can afford the payments. you must convince them that you can't.
In my case and most people on here from what I can tell it is the truth but it is still a game to get them to finally beleive that you have x amount to settle with and no more.
good luck and keep us posted