I also posted the following in the collection/creditors forum - wasn't sure which it belongs in since it's about debt settlement, with creditors. :?
We can't afford our house, we are self employed and aren't bringing in enough money to pay the mortgage and cc's. We realized this a year ago and put the house on the market last May. No, it hasn't sold. So we used our cc's to get by. Now we have an agent that specializes in short sales and are working with countrywide and suntrust to short sale our house. It is 50,000 below appraisal price and still no lookers! We have 7 kids to house and feed, I'm a bit nervous about our future.
We owed 2500 (2900 after late fees, etc) to Advanta. They offered to settle it for $1629 in one lump sum payment through their handy web site. We stopped paying in March and just received and accepted that offer. They were aggressively calling but we used call blocking on them and then they sent an email asking me to check their web site for an offer. Why can't they all be that easy?
WAMU, after sending me to some supposed collection dept, then sent a letter to check their site, wamucanhelp, for their offer. One card - $500 balance - settled for $269. The other card - $4500 - settled for $2100. Both arranged for four payments. Wow. Of couse these accepted offers are going to give me 1099s.
Discover has a web site too but it does not offer a discount on the principal (yet). (Balance=2500) I wonder if it will? Anyone know?
Talked to BOA today and I owe them the most. 12,000 on one card alone - $6000 on another and $5500 on another. They'll waive late fees, reduce interest to 4.5% and set up the payment plan for 60 months - the three together come up to $400 a month. Ouch, that's more than when we were on time with our payments. Anyone have any experience with them? Will they offer/accept a lump settlement for less than the principal? Will they do it for more than 4 months? Will they just sue me since so much is at stake?
Chase has been nice on the phone, and not harassed. They just call once a month. Will they end up making an offer, or getting aggressive? My balance with them is $8k.
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.