citibank offering settlement on 2 accts over 20k each.Is it ok?
Date: Tue, 04/19/2011 - 13:16
) and I am a few months late on paying anything on either one of them. Citi has sent me settlement letters on both accounts offering to settle for approx. 25% of the total balance (approx $5k on each of them). I spoke with them over the weekend to find out the details of settling the one account and the problem is that they want the $5k paid off within 3 months and there's no way that I can do that. They want a decision by tomorrow (4/19) or they are going to turn the account over to an attorney in my state and I definitely don't want that. They did offer to let me pay off the entire $20k balance over 4 years but the monthly payment on that is almost $500/month and I can't afford that either.They're going to want a decision on the other account next month and I'm sure they'll want that one paid off within 3 months as well if I decide to settle.
I'm not really sure what I should do as I really want to pay my debts but I just don't have the money right now and I don't want my credit rating to be completely ruined. Any help/advice is greatly appreciated as I really don't know what to do at this point.
Greetings "psywzrd", That is an outstanding offer from the citi
Greetings "psywzrd",
That is an outstanding offer from the citi bunch!
Too bad on finding the money to do it.
Next year you'll have the 1099's to deal with.
Depends on the irs solvency rule.
Regarding the almighty credit score....if you can't pay then it's toast.
It will recover in time.
Have you explored bk?
The first consulatation is usually free.
Regards,
King "Kash" Jabba Labba
Yes, I'm more than 90 days late. I've communicated with them her
Yes, I'm more than 90 days late. I've communicated with them here and there but they really didn't offer much until the settlement letters. The one settlement is for 20% of the balance and the other one is 25% but they still want it paid within 3 months and I just can't do that.
That's too bad. I hope it works out for you either way. Most peo
That's too bad. I hope it works out for you either way. Most people would kill for settlements like that!
I hear you and I really do want to do it but that would require
I hear you and I really do want to do it but that would require coming up with about $10k within 3 months and I just don't think that's possible without hitting the lottery or something. Heck, if I had an extra 10 grand laying around I probably wouldn't be in this mess to begin with. Not really sure what I can do at this point.
Yikes - I don't even want to think about bankruptcy at this poin
Yikes - I don't even want to think about bankruptcy at this point. I can pay my mortgage, my utilities and my car payment but unfortunately this credit card debt has gotten bad and I really have no choice but to pay it last. I can't afford to have my house or car taken away and I need water, electricity, etc. I'm looking at every way possible to cut my expenses to free up some money but I think I've just about exhausted all possibilities.
Do you have a 401k or pension you could borrow from? What abo
Do you have a 401k or pension you could borrow from?
What about a home equity loan? any family member you can borrow from? income tax refund? a second job for a while?
The settlement Citibank is offering is the best I've seen and I'd hate to see you lose it.
I don't have much in my 401k that I can take out (around $1200 o
I don't have much in my 401k that I can take out (around $1200 or so). A home equity loan would probably do it but I don't see how I would even qualify given my credit rating. Is it even worth looking into?
On the 25% offer make them a 20% counter-offer, and on the 20% o
On the 25% offer make them a 20% counter-offer, and on the 20% offer make them a 15% counter-offer. Worst they can say is no, and if they say yes, take 3 temporary jobs if you have to, whatever it takes, to make the 3 payments.
Not sure that they'll even entertain a counter-offer but I guess
Not sure that they'll even entertain a counter-offer but I guess you're right - the worst they can do is say no.
my hubby got a settlement offer via mail too. but they offered 4
my hubby got a settlement offer via mail too. but they offered 45%, on a balance of almost 17,000. he has until may 15 to contact them on it. like you, there is no way we could even come up with 20% & make 3-4 payments... we have 2 other cards with them too, that we expect to get letters on any time now, but cant do settlements on those right now either. i guess we will be calling them to see if we can get the hardship plan re-upped like we had it before, for 12 months. talked to them just after the program ended, and they said all they could offer at that point was 0 interest for 4 years and pay it all -payments of all 3 combined were about 800 a month. cant do that, as we are trying to settle smaller balances. but again like you, we are stuck on not being able to do settlements on citi cards right now. only one income, i am disabled but not approved for ssdi yet. hubby can not take a second job due to restrictions on that by his full time job, plus he has to do most everything here at home too. tough situation...
