Best way to settle debts
I am new to this forum and could use some help.
After a stretch of unemployment and wife's medical issues, i have fallen behind on my CC payments. This all started 2 years ago and i have yet to pay one bill since. I would like to start the process of at least negotiating. I have received collection letters of up to 70% off some balances.
Here are my questions:
Is it possible to deal with only one agency during the process or do i have to work with all of them?
Should i call the credit card company directly and ask if they can offer the same or did they already charge-off?
Like i said, this is new to me, so any help is appreciated.
Of course, the easy way out and the cheapest route is BK, which i really dont want to do.
Thanks in advance.
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.