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how to start credit card settlement

Date: Sun, 03/25/2012 - 14:04

Submitted by agoode
on Sun, 03/25/2012 - 14:04

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Total Replies: 4


:oI would like to know how I, and if yet, can go about starting debt settlement negotiations from those that have been successful. I currently have some credit card bills, yet I will use this one as an example from Citicards. At this time, the account is in debt for $6,486.16 It is also 65 days past due right now. I am not going to be able to pay this amount back, even with the minimum payments. I do have a full time job, yet it is because of all the other financial difficulties that I have gotten myself into. What I am trying to find out is information about setteling with the company myself. I have read that I might not be far enough behind to even get a settlement yet. Would I call into Citi Cards, and right off the bat say I am interested in a settlement. I have seen where people got a settlement of 20-35%. I have also read that this is a negoatiating game. If I can even settle then, do I call in and start with a low offer like the 20%? If I do arrive at a settlement though, i still would not be able to pay it in a lumpsum, yet would need some type of payment plan. Can you get on a payment plan with a settlement, or does it need to be a lumpsum?

Thank You.


A settlement by definition is a lumpsum payment. A few creditors will allow short term payments...usually no more than 6 installments. A 20-30% settlement would is so low it would require a lump sum. Didnt think that citibank would go that low...they are very agressive and would rather sue than accept setlements that low.


lrhall41

Submitted by SOAPLADY on Sun, 03/25/2012 - 17:47

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Settlements can consist of any number of payments that are stipulated to as part of the settlement agreement. Most big lenders, including Citi, will have no problem stipulating to payments, except that banking regulations often limit their ability to accept settlement payments spread over more than 93-95 days, which effectively means no more than 3 payments. There are exceptions, however.


lrhall41

Submitted by options on Sun, 03/25/2012 - 23:41

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I think you should call up your creditors and start negotiating with them. Citi is a tough nut to crack though, they will usually start 80% or more and go down till about 50%. The best settlement offer I have seen Citi offer is 45%. You might get a better offer post negotiations from one of your other creditors.


lrhall41

Submitted by StevenDoyle on Mon, 03/26/2012 - 00:34

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I am no expert on the subject, but I will say that if you inform yourself well and persevere you will be able to settle your unsecured debt. This forum has a vast well of information you should arm yourself with before even starting.

The first thing anyone will tell you is that you need to have money saved up so that you can pay your creditors when you settle, otherwise how will you pay them? The best deals are made in one lump sum payment.

Second, I'd recommend making a list of your creditors and searching the forums to get an idea of what they typically settle for (percentage wise). That will help you organize yourself better and have an idea of what to go for when negotiating. Each creditor is different and employs different tactics.

You need to read up and inform yourself of the advantages and disadvantages of settling debt; everyone's case is different and you can't expect to get all of the answers on this one post.

I am negotiating with Citi 2 accounts right now and they are tough. I have them at 60% of the total debt owed, but I need to go lower as I can't afford this. I am aiming for 45%, we'll see.

Good luck on your journey of becoming debt free.

Hugo


lrhall41

Submitted by hrvasquez on Wed, 04/04/2012 - 05:51

( Posts: 9 | Credits: )