Citibank and BofA...what to do???
Date: Wed, 02/04/2009 - 07:31
Thanks so much to everyone, this website has been a blessing!
I like many are swimming in debt. I have at least 6 different accounts that I stopped making payments on, mainly in September and October 2008. Two of the accounts, my biggest two, are Citibank and Bank of America. Both accounts will charge off right around the same time. Citibank at that time will be about $28,000 and BofA $40,000.
My problem is that I have used all of my "settlement savings" thus far to settle some of the other accounts. By the time I will be able to settle with Citibank and BofA, assuming they will both settle of course, I will only have $2000 per month to pay out for settlement. From reading many posts here, BofA settles at a great rate but only if you can come up with the $$$ in one or two lump sums.
So, my question I guess is this: With BofA being my biggest account, do I wait to settle with Citibank and take the chance of being sued by Citibank, in order to get the best settlement with BofA before charge off? I am so afraid of being sued, I want to do whatever is best to avoid that even if it means paying more $$$ in the long run.
Please can anyone offer advice or their experience that may help me? I am worried sick about this and I need to have a game plan. Oh and I am doing this myself. Thank you so much!!!
What to do???
toomuchdebt,
First off, you are right. This site is awesome. There are thousands of folks with great personal and professional advice and experience. It???s nice to know that we are not alone!
Have you considered working with a debt management planning company or a professional Debt Settlement company? There are pros and cons to both but I would strongly suggest that you take a look into both. They will both get the debt paid off without having to come up with a huge lump sum.
It sounds like you would be a better fit with a debt settlement company. First and foremost, it sounds like you???ve already made a conscience decision to settle the debt as opposed to paying it off in full. A debt management company is simply going to reduce the interest rates a little on the cards and set you up on a repayment program that could take years. Although they make less of a negative impact on your credit, it is much more expensive and takes much longer to accomplish than Debt Settlement. Furthermore, impact on your credit is really not an issue at this point as it has been suffering for some time.
I would suggest that you call a professional Debt Settlement company for some advice moving forward with these two and the remaining creditors. They will begin contacting your creditors immediately and begin negotiating terms. You will not be forced to present a lump sum payment and you???ll be on your way to debt freedom. They can also provide you with helpful information to repair your credit while in the program. PM me if you would like some recommendations. There are trustworthy settlement companies out there.
I have considered working with a debt settlement company. I do
I have considered working with a debt settlement company. I do see the value in working with one but would rather utilize the cost of working with a company towards getting rid of this debt. No matter how great a company is in helping people settle their debt, you must be able to come up with the settlement money, period. My overall debt is so high that I really need to save as much as possible. I have already successfully settled with 2 other accounts myself, so I really feel I can do this. I am just trying to figure out with Citibank and BofA in particular which one do I take a risk of letting go to charge off?
BOFA carries the lion's share of the debt and recourse. I would
BOFA carries the lion's share of the debt and recourse. I would work to eliminate that first as it could have the greatest effect.
I am no expert - but my is to settle to which ever gives you the
I am no expert - but my is to settle to which ever gives you the best deal that way you only have one outstanding. From what I have read and my experience, BoA is pretty good and fast in settling and Citi takes a bit more time. Plus Citi is going through though times right now. They are pretty much selling off it self to reduce to 40% of its current size (this includes selling of their credit card department) and the high execs got 500k salary capped today... i think this is going to rock citi more and they would be less likely to pursue other issues to the fullest as they are dealing with itself. But yes I would say which ever one gives you the better deal.