Settlements and offers
HSBC @ $1678.
JC Penney @ $800.
BOA @ $1715.
GE Capital @ $1715.
The balances look rather small compared to some of the others on the forum. However, we just have too many cards w balances. I have a few other cards but i can pay those because the pyments are reasonable. Its just so hard to not have money for emergencies. Very scarry.
I used to be with CCC, but had to get off due to the high payment. $765 a month. Im late on these cards but not sure how late. Ive been offered 35% by BoA recently and HSBC has offered 30%. I have not heard from JcP and GE is calling my house. So Im just socking away money every mth. til i can pay them off. My question is shall i wait for a better offer or give it a few months? Also, will i receive a 1099 if i pay most of the balance? Thx
You will receive a 1099 if they write off $600 or more. You re
You will receive a 1099 if they write off $600 or more.
You realize that going into collections with some of your cards will more than likely result in interest rate jumps on your other cards plus your credit lines being reduced to next to nothing.
willing to settle
Yes, im aware of this, but i cant handle the stress anymore. We started at $28000 with CCC May 2007. We had to cancel the program when we were at about $14000 left to go. We've had many emergencies happen over the past few yrs.and not enough money to cover them w/out skipping or extended a bill or two. Our house is falling apart and needs repairs in many areas. Im pretty much done...willing to settle and willing to accept any consequences that follow...
It's always better to settle the debt and start your financial l
It's always better to settle the debt and start your financial life afresh. But it's true that the interest rates on your credit cards will increase after this. What you can do is, after settling certain certain debts (i.e., the ones that are high and which you want to settle), try to pay off your credit cards within the end of that billing cycle. In this way, you can avoid paying interest rates on your cards.
CARD Act and credit card interest rates
Due to the CARD Act, credit card companies no longer "rate jack" you when you are behind in paying another card they can see you fell behind with when doing the typical periodic credit report review. With cards you are paying on time, rates get raised through your established card agreement terms or when you are late 60 days.
Cards you are paying on time can still arbitrarily lower your credit limit and close accounts as a result of the periodic credit reviews (though seeing other accounts you have are past due is not arbitrary, as it indeed shows increased risk).
