Best way to settle debts
if the accounts are in
if the accounts are in collections, they are charged off and you will not be able to work with the original creditor. You will need to work with each individual CA.
Who are your creditors?? If you are being offered 70% off balances, I would seriously consider these offers.
The best way to settle debts
The best way to settle debts is to settle all of them at the same time.
Do you have a way to generate the funds to do so?
If you do, you should meet with an accountant prior to initiating your negotiations with your creditors. Just to be sure of your individual tax situation. The last thing you want to do is switch your debt problem from the credit cards to the IRS.
By meeting with an accountant first, you will become aware of this potential cost and you can then determine if (a) you can afford it and (b) if settling still makes sense.
I settled several credit card
I settled several credit card debts 3 years ago. I had to negotiate each settlement. Each creditor is different. you have to stay firm on what you can offer them. The "forgiven" amount can be offset if you can prove you are insolvent at the time of the settlements. I never had to pay taxes on my debt because I was insolvent.
Great advice Aubrey. Most
Great advice Aubrey. Most people don't have to pay the tax. But, people really need to check before hand, to be sure. If they owe tax and don't have a way to pay it, they risk shifting their financial problem from their credit card companies to the IRS.