Should I try settlement with Citicard and BoA

Neither company will offer a settlement unless you are delinquent. You might try calling them and asking them to lower your monthly payments. That way you go on record as having financial difficulties. If you allow your accounts to go delinquent in order to settle, how will you get the money for settlement? Bank of America is the easiest to settle. Citibank plays hardball, but it's doable. I settled with both of them, with my last Citibank payment being 2/28.

You can do this yourself by following instructions on this website and asking questions. No need to pay a debt settlement company to do what others have done themselves. I managed to settle with HSBC, Bank of America (2 accts.), Chase, Citibank, Discover and negotiate payments with Cap One.

You just need to have a source of funds for settlement (loan from family, tax refund, etc.).

Hi Aubrey,
I too have balances on a Bank of America credit card and a Citibank credit card, and am not employed yet, so I am unable to pay the minimum balances on the account. I'm not sure how long I should wait to be offered a settlement amount that's reasonable. To the extent the amounts are affordable, I plan to get help from family to open up a cd acount for the amount owed on the credit cards and then borrow against the cd to pay off the credit cards. Then, as I understand it from a financial adviser, in paying back the cd that I have borrowed agains, my credit rating will go up...How long did you have to go delinquent on both cards to be offered a settlement amount? What was the settlement amount offered by each?

Thank you in advance.

To the OP - Large cash advances such as you have made with the convenience checks you refer to, and if done in the way I read your comment to have been made, where you pretty much did so all at once and where those actions constitute most of your current balances..... can majorly complicate your settlement goals.

I would advise you not attempt settlement, but maintain your minimum payments for a year on each account respectively at a minimum.

Best of success with your employment prospects!

Aubrey: Thank you for your input. If settlement is possible, I will just share my room with someone else to save the money and cut down on my eating.
Someone else: That is exactly what I worried about. I did write a check to myself in the amount of $6000 from Citibank and $8500 from BoA. And to date I have brought Citibank balance down to $5000 and BoA to $8200. It will be a year with Citibank this June. By then will it make it easier for me to do a settlement with them (if I didn't find a job still then)? And then stop payment with BoA so that I go into delinquent and start settlement with them?
If they are not willing to settle, what's the worse that can happen to me? If I just can't pay anyway, what will happen? Do they put me in jail or anything of that sort?
Thank you so much for all the input.

My Bank of America accounts (2) were settled at 25%. One reached charge off and went to a collection agency who proceeded to violate every rule for debt collection. I wrote a letter to the CEO of Bank of America explaining what happened, and they yanked it back and I settled with them in 4 payments. I now have a lawsuit pending with that collection agency.

Citibank was a little bit harder. Just before chargeoff I settled at about 35% - I had a balance of $10,400 at settlement. I settled with 4 installments and the last one is 2/28.

I borrowed from my 401k and my pension fund to fund my settlements because I had previously had to deal with payday loans. My pension loan will be paid back before I retire next year.

It will be so nice to have my full paycheck to myself again:p

I also had cash advances on mine, but several years old. When negotiating settlement, you might tell them why you took them e.g. mortgage, car repairs, medical bills, house repairs, child support, help elderly parents, tuition etc.

As an alternative, you might be able to negotiate smaller payments and get them to reset your interest rate to 0%. Whatever would be best for you to offer. If they won't do this, then tell them your only option is to go to charge off.

If you simply cannot pay , here is some of what may happen:

Stop payments creditors call frequently for 6 months the charge off the debt.
Post charge off creditors will opt to do 1 of 3 thing: Assign, Sue or Sell.
Your account behavior with large cash advances increases the likelihood your accounts are dropped into the Sue bucket.
If sued by your original creditor, you can file an answer to avoid being amongst the 90 plus % of low hanging fruit who get sued and hit the ignore button and default judgment is entered.
You buy yourself time by answering the complaint, but with no real affirmative defenses it will likely end up with summary judgment granted.
The judgment is just a piece of paper, but with legal enforcement options including bank account levy, property liens and wage garnishment.
You can certainly live life without a bank account in your name or one where you keep less than 100.00 balance at all times.
The garnishment will be the real concern. If you are struggling now, try getting by with as much of 25% less in your pay check. Granted, with a lower income you will likely qualify for partial or full exemption from the garnishment, but you will find better employment with better pay in the future and the judgment will follow you.

Judgments grow by the interest amount the court sets that cannot exceed the legal limit in your state.
Judgments have a shelf life of typically 10 years and can be renewed. If the judgment is renewed prior to its expiration for another 10, you are dogged by the judgment for 20.

I know you can only do what you can do. When things turn around you can handle things then.

Also, you may be able to settle these accounts at similar rates as those who did not have large recent cash advances. My experience suggests you are less likely to be able to given the account history you have. You may be able to settle later down the road, even judgments.

No, you do not go to jail.

Keep your head up. Do what you have to do. You will get through this rough patch.

Thank you so much everyone for your help. All the information you gave me has greatly helped me with making a decision. I guess I am going to continue to make the minimum payments for as long as I have to and hopefully I will find a more decent job after all this so that I can afford to actually live. Thanks again.