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Debt Settlment

Date: Tue, 05/01/2012 - 08:52

Submitted by anonymous
on Tue, 05/01/2012 - 08:52

Posts: 202330 Credits: [Donate]

Total Replies: 3


I am currently in about $33,000.00 in debt due to credit cards and personal loans. I have a car loan and a rental property. I am having a very hard time paying my credit card balances and want to settle with three major companies. Chase, Citi and Discover. My question is should settling be an option for me or should i refinance my mortgage, take out a loan and pay off everything. Actually I am not sure i qualify for that?
Second, when requesting payoff quote for Chase they offered a only a 35% reduction in the balance, is that OK? I preferred at least a 50% decrease.
Should i also try to settle my car payment or does this really harm my credit?


You will risk having the vehicle repo'd if you try to settle with the creditor. Out of the 3 cards that you have, Chase is the least aggressive. Discover and Citi resort to litigation at the drop of a hat. You should try negotiating with Chase a little harder. Maybe you will get the 50% that you are looking for.


lrhall41

Submitted by jonheller83 on Tue, 05/01/2012 - 22:53

( Posts: 65 | Credits: )


Hi ronlov,
It i said that "something is better than nothing". So, if you're unable to repay your credit cards full, you can think of settling your debts and 35% is a good settling offer if you cannot repay the full amount.
As Soaplady said, you cannot settle your car loan but you can refinance it to make the payment manageable.
If you've enough equity in the property, you can opt for cash-out refinancing and use the extra amount to get rid of your other debts.


lrhall41

Submitted by tiarajoseph11 on Wed, 05/02/2012 - 13:54

( Posts: 473 | Credits: )