Can I negotiate a debt settlement if my accounts are current?

First, congratulations on you improved credit score.:D

Foreclosures normally stay on the report for seven years and get removed afterwards. Hence, if the time period has passed by already, then you don't have to worry about them for not appearing in your report.

Now regarding the issue in hand, if you can pay-off the credit cards, pay them off, because any unpaid credit will again can ruin your score. However, you can negotiate with the lender regarding lowering the interest rate.

Or, can consolidate all the high interest cards to the one with the lowest rate and close the others.

If you are so far current with your payments( paid at least the minimum amount in all) a debt negotiation or settlement program may not affect the score very adversely. However, you have to make sure that you stay current on the program also.

Hope the inputs help. If you have any more doubts in your mind...shoot it to us.

i you can pay off the full balnce the do so,, your overall score will be better, but if you really cant or it will take to long, then save the money and settle out the accounts, your credit will still improve and you will have it updated much sooner, i setteled a few bills a while back and my credit score now is 760, so im okay , and dont use a credit counceling service, its a snag, just call and negotiate creditors and offer them immediate funds to settle the account, no less than 50-percent, between 55=75 percent, ,, good luck

HI bill collector, nice advices Smile though I guess that 55-75% are pretty high amount to settle with, while a settlement company can settle your debt as low as 40%. Why do you feel that credit counselling is a snag?

Sundane

If I were you I would strongly consider you look into a consumer credit counseling program first. They can get you one payment with much lower interest rates "6-10% usually " so that you get the debt knocked out much faster than on your own. It will also not hurt your fico score and you will be able to pay off bills much faster than on your own.
However if you struggling and you are basically at the point were you just really can`t afford your payments and get overextended than maybe a debt negotiation or settlement program might fit your needs. A good settlement company can settle your bills for usually around 40% and sometime as high as 60%. Be aware though that settlement will hurt your score because your bills have to be past due before you negotiate creditors for a settlement. I would suggest that you compare debt negotiation vs credit counseling. I usually advise to check first if you can afford the monthly payment. Debt negotiation or settlement is a hardship program and best for people that don't qualify for debt management, can't continue paying minimum payments, can't borrow to pay off debts and don't want to file bankruptcy. I know I sound like a broken record because I always put this on the end of my posts but What ever route you choose please be sure to look any company you are considering with the BBB. Good luck to you qms006 . I am sure things will work out.

i recently recieved a list of debt that has been ignored for the last 6 years(divorce,limbo)no excuse i have just awaken and need to face these items. 1 account 6 years delinquent started$5200.00 now 8500.00. The only one open i guess enough to constantly be denied any credit any where..Have paid off mortgageand two vehicle loans why why

Hi John,

It's been a long time you have ignored paying towards these debts and this is why the outstanding balance has increased so much. You're right in saying that these delinquent accounts will make things difficult when you apply for new credit. Thus, it'll be worth your while to pay them off as early as possible. Debt negotiation can help you in this situation. You can lower the outstanding balance on the accounts through proper negotiations with your creditors. They may also waive off certain extra charges and fees. Once you pay off the debts, you can get the accounts reported as "settled" or "paid as agreed" to reduce the negative impact on your credit.

I'm a recovering alcoholic, it'll be one year on the 26th of march. And because of the drinking I've destroyed my financial back round. But now I'm clean and tacking care of my self and family, I just need to do the same for my past to better my future. Now for what I can think of the companies and amounts insist of Key Jewelers $436, Com Cast $287, Liberty Mutual $871, Bally Total Fitness $3,800 and others I can't seem to remember at this present time. So if you can give some kind of insight on this matter I'd be much obliged.

Hi ankiesd,
If you have too many debts to pay off, you can consider the option of consolidating them into a single monthly payment. You will not be required to deal with several creditors. Consolidation will make your debts manageable as you will be able to control your finances in a lot better way. You can consider taking help from a professional debt consolidation company to combine your debts into a single one.
If there's enough equity in your house and if your credit is good, you can consider taking a home equity loan. The interest rate on this type of a secured loan is comparatively low and helps you save some money while consolidating your debts. However, remember that if you default on the home equity loan, you also run the risk of losing the home.

I wish you pay off your debts quickly and start a new stress-free life.