settlement question

Date: Thu, 10/19/2006 - 14:32

Submitted by anonymous
on Thu, 10/19/2006 - 14:32

Posts: 202330 Credits: [Donate]

Total Replies: 2

I owe about 150,000 in credit debt. All my major credit cards are max out and have been for about a year. I also have some store cards, all max out. I have 2 car loans and $8000.00 in student loans. I am getting to the point where I cant pay on any of them anymore. I could get a loan to pay all of them off but everyone would have to settle for about 80 to 85% of full payment. Has anyone heard of the major credit card companies and other credit companies settling for a 80 to 85% settlement instead of the risk of no money as I will be forced to stop making payments. I realize they will close my accounts out if they except the deal, would it also be a bad mark of my credit report, or is it possible to have them not report a bad mark to the credit reports in the deal.
Thanks

In most cases, credit card companies will accept your settlement

In most cases, credit card companies will accept your settlement plans because they want to avoid the situation when you'll be paying nothing. Some may not be so friendly with your terms and will force legal actions. For doing this, they will have to bear the court costs and attorney fees and put valuable time into the matter. They have many consumer files to maintain every day. I doubt if they will spend time on individual cases especially if the amount to recover is a small total. Go ahead and propose your settlement plans to the creditors. I hope they will be able to do adjustments on your file. You can negotiate with them for a fair reporting during the process.

lrhall41

Submitted by IncredibleHelp on Thu, 10/19/2006 - 14:59

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80-85% payment

If you let you student loan(s) go into defualt; they will make payment arrangements with you. Possibly even before you go into default. It would be worth talking to them to find you how different payment arrangements will affect their credit reporting on you. Too, it sounds to me like you just need to cut your cards up at this time.

lrhall41

Submitted by on Thu, 10/19/2006 - 18:31

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