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I just settled my cc debt on my own!!!!

Date: Thu, 06/15/2006 - 14:59

Submitted by mattyk151
on Thu, 06/15/2006 - 14:59

Posts: 24 Credits: [Donate]

Total Replies: 34


I have been contemplating debt settlement and Bankruptcy for about a month now. We met with a few lawyers this week to discuss chapter 7. We qualified for it but were still looking for a way out. I liked what the settlement companies had to offer, but didn't like their high fees or their bad reputations.
Finally I felt like I had nothing to lose so today, I called MBNA to which I owe $19,000. I told her that I met with a few lawyers and this week and we are on the verge of bankruptcy. We really don't want to declare bankruptcy and we have a chance right now to get a home equity loan and we are wondering if you would be willing to settle for 60% of what is owed. Without hesitation she said yes we can accept that. She was very nice and cordial and just told me to call them when I get close to getting the money. She documented everything gave me her phone number and name.
So, to everyone who is considering a settlement company, you can do it yourself! I had read people talking about how you could do it yourself but never saw any posts about anyone that has actually done it. It was very easy and the phone call lasted about 3 minutes.


Congratulations! I handled my PDL mess on my own. It takes a lot of guts to do it on your own. (Not saying those who use help don't have guts!)

Did you ask her to report the debt as paid in full? It's worth a shot, and will look great on your credit report. Get EVERYTHING in writing. Get them to sign a contract stating that in return for you paying the debt in a lump sum, that they will remove negative information on your CR and report the debt as PAID IN FULL.


lrhall41

Submitted by Jessi on Thu, 06/15/2006 - 15:12

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The reason behind this deal being accepted so nicely is that you were aware of your responsibility and wanted to clear off the debt. Obviously, the lady you were talking to was a nice one who eased out the remaining part. You were lucky enough to have everything in shape. Get the letter mentioning the account paid in full and wait for the item to be updated in your credit copy. I am glad that you are feeling better now.


lrhall41

Submitted by GunsNroses on Thu, 06/15/2006 - 15:18

( Posts: 485 | Credits: )


Word of warning - for your sake I hope everything works out okay but make sure that the 60% settlement offer is the end of it. I've read where too many debtors agreed to a "settlement" thinking their debt was settled only to find that the 40% part written off was "sold off" to one of those companies that pay pennies on the dollar for the unpaid portion.

For that reason you need to make sure that there is something from MBNA in writing that acknowledges that the settlement you offered and they agreed to is in fact paying the debt in full. Good luck.


lrhall41

Submitted by on Thu, 06/15/2006 - 15:49

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My situation is a little bit different because I already received a summons so it's like they hold the leverage :( What cruel about it is they sent me a letter a while ago and they didn't even bother to try to contact me! They're cold hearted animals! We've all gone through hardships in our lives or make a mistake but they don't have to push us to the corner! Anyway, at this point, I think I can negotiate with them but probably won't get that much or maybe even not at all, so what are the tips that you guys could give me? Would it be better if I have an attorney/debt settlment deal with them? Thanks again for everything. God bless you all!


lrhall41

Submitted by on Mon, 06/19/2006 - 13:10

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Ok, I couldnt't wait until tomorrow, so I was just off the phone with them. My debt was approximately $4k. I called my original creditor (Chase) and they said it was $6.4k when it was transferred to this CA the end of the year 12/05. The summons I received about 2 weeks ago stated $8.6k and now when I called, that guy said it's $9.3k! Anyway, I talked to him and he said he could only cut $1k! I proposed if I could pay down $3k today and $1k a month after that and if he could reduce more. He said no but after a while he said he would contact his client to see if they agree and would call me back. He called back but I was not here and when I called him back, the other guy said confirmed that $1k is all they could do! I want to propose $3k for now and $1k per month for the next 2 months because if it's longer than that, I don't know if I can survive... :oops: Did I not know how to negotiate? I think the amount I propose is fair enough, right because I pay ($5k) almost 60% of the amount stated on the summons ($8.6k) And how the hell they got that $9.3k! What am I gonna do now? :cry: I don't have that much time because I know that they hold the leverage.... I knew that they're cold hearted animals, beasts. You know how much I really hate them now!! I'll try to call a debt negotiator to see if they can help...


lrhall41

Submitted by on Mon, 06/19/2006 - 16:01

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Ask them to give you an itemized statement how they reached to that total. You have the rights to ask for this summary. You need to know if the company has been fair enough to charge within the permissible amount. Talk to a consultant and he will try to get the matter straight enough.


lrhall41

Submitted by Justme on Mon, 06/19/2006 - 16:11

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So does that mean that I'll bring this to court? I asked this question and another person told me that it's pointless now because I have to file Answer to the Complaint in proper legal form; otherwise, I will lose automatically! Of course I want to ask them first to prove it's my debt because it's been at least 3 years with signed signature agreement, and then ask them to provide itemized statement like you said but the law nowadays does anything to make it harder for us to even put on a fight with those CA's. Anyway, is there other ways to keep negotiating with them to see if they can give me a better settlement because they just jacked up the amount by almost $1k and now reduced by $1k, so that really doesn't do nothing for me!
Thanks for all your help again! Really much appreciated throughout this hard time.


lrhall41

Submitted by on Mon, 06/19/2006 - 16:49

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I'm just off the phone with a debt negotiator. She told me that it could be because I didn't know how to negotiate with them. It would be harder to negotiate with them now since I already talked to them. I'll go see her in a few minutes and she asked me bring the summons with me. She said probably we would both talk to them tomorrow but now, she can't represent as an agency anymore. Maybe she'll play as my sister. I'll keep you posted tomorrow.
Thanks again!


lrhall41

Submitted by on Mon, 06/19/2006 - 17:24

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I am roughly about $8,000 in debt. I am a single parent and don not make a whole lot of money. Do these compaies charge a big fee for helping you? am sure the don't do it out of the kindness of their hearts! Thanks


lrhall41

Submitted by on Tue, 06/20/2006 - 04:24

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Most of these companies charge 10% - 15% of whatever difference they can reduce the debt for you. For example, if they can reduce your debt by 50% down to $4,000, the fee will be 10 or 15% of that reduction or $400 or $600. The one I talked to yesterday charges 10%. For me, it's worth it if they can negotiate at least 40% off your original debt; still, it's better than nothing or only 20 to 30% off if you negotiate yourself.


lrhall41

Submitted by on Tue, 06/20/2006 - 08:42

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Ok, I talked to that guy again today and he didn't sound like a beast like yesterday. He reduced my debt a little bit more, 20% off, but not as what I want, consider on top of the amount on the summons, he added almost another $1k for whatever fee he calls. My negotiator hasn't had a chance to talk to him since she's been too busy but she'll talk to him tomorrow, so wish her luck. I have until next Friday, 6/30, to file Answer to the Complaint or settle it. I felt a little nervous talking to them yesterday, but after another talk today, I feel a bit more confident now, learn something new even though I didn't reach the goal I want (like matty did)


lrhall41

Submitted by on Tue, 06/20/2006 - 17:50

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Ok guys, my negotiator just talked to CA and unfortunately, it still doesn't go anywhere: he can only cut off 10% (after jackup almost 10% with all the BS fees) He offered another option is 20% down now and small monthly payments with lower interest rate and I think I can survive with this option even though I have to pay a little interest, I just need to squeeze out my budget a little more. When my negotiator mentioned that we might choose the option to file an Answer and go to court, he didn't seem like he wanted that option. I heard that many times, the judge will listen to you and will reduce the amount, right? So, my question is: is it a better way? Does the judge really listen and will reduce the debt for you?
Thank you all!


lrhall41

Submitted by on Wed, 06/21/2006 - 11:33

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John, you will have to take your pay stubs, credit reports and all others documents that prove you are unable to afford this payment plan. The decision of the judge is final and you will have to abide by it. If you think settling the matter outside the court will be helpful, follow what your consultant says.


lrhall41

Submitted by andyyoung on Wed, 06/21/2006 - 12:18

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Yeah, that's what my negotiator told me; the judge will ask for all the paperworks to support my claim/statement. So I guess I'll have to settle the matter outside the court and accept his proposal. So my question is: what do I do next? I know that I'll require everything in writing, but do I still need to file Answer to the Complaint to the court clerk just in case?
Thanks!


lrhall41

Submitted by on Wed, 06/21/2006 - 13:13

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If it's free, I wouldn't mind filing an Answer to the plaintiff's paper. But I believe it costs $98, right? And right now, I don't want to spend any more on this mess. I'll find out to see if it'll cost anything to file an Answer; otherwise, I'll just have an alternative way to ask those bottom feeders to drop the case in writing. I just want to cover my rear in case if those bottom feeders turn around and do illegal, dirty things.
Thanks for your help!


lrhall41

Submitted by on Wed, 06/21/2006 - 16:16

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One last question: when I pay them, do I pay by cashier check or my personal check? Another forum says that I shouldn't pay my my personal check because then, they would know where I bank at and my account number. What if they want me to pay tomorrow, do I have any other option?


lrhall41

Submitted by on Wed, 06/21/2006 - 20:34

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I will also suggest you not to use your bank account for making the payments. Use a cashier check, money gram or western union. They also work the best. The company can insist you to make the payments in full, but some partial payment from your side will prove that you are willing to pay them. This effort will always put you in the safe side rather than paying nothing.


lrhall41

Submitted by andyyoung on Thu, 06/22/2006 - 13:12

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Ok, I've just talked to that collector and I have until the end of next week to send in the payment, so I'll use money gram or Western Union as you suggested and also for my monthly payment to them. I've just received the stipulation from them outlining exactly what I want. Since the stipulation (6 pages with the terms & conditions...) was prepared today right after I was off the phone with the collector, it didn't have the signature yet of either the collector I talked to or their attorney's signature. Should I request their signatures on it to be safe?


lrhall41

Submitted by on Thu, 06/22/2006 - 16:32

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I think I'll try, better be safe and make them work hard. If they already have my signature on the agreement, I'll have to ask them have their attorney sign that too. You're right, most of it is computer generated, except some part that apply to me.
Thanks for all the help!


lrhall41

Submitted by on Thu, 06/22/2006 - 17:22

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