Serious Credit Card Debt

Date: Mon, 05/07/2012 - 10:39

Submitted by anonymous
on Mon, 05/07/2012 - 10:39

Posts: 202330 Credits: [Donate]

Total Replies: 3

About 2 years ago, my husband and I both lost our jobs. We went from 6 figure income to nothing. We had savings and used our 401k just to keep our house and keep up on the bills. We are both working again but making about $25k less than we were. We sold everything we could to keep up on the bills but have fallen behind on the one credit card bill with Citibank. About a year ago we got a letter saying they could lower the interest and therefor lower the payments but when I called they said we did not qualify for that program and nothing else. We do not have enough to meet the minimum payment that is due and the balance as now ballooned to $23,000, with over 87% of that being interest. I feel that they are just being greedy now and I am sick of them calling every day even after we have sent them letters telling them not to. They have not been willing to work with us at all and I feel it is because we always find a way to get the money to get caught up but then fall behind again. I would like to stop paying them and start putting that money in a savings account and try offering them a settlement in a few months but I don't think we can save more than $3000 in that time frame. What suggestions does anyone have?

What payment options are there with citi card

When did you last make a payment?
Did that payment bring the account current (up to date with all minimum requirements)?

If you can answer those questions, feedback could be more meaningful.

Settling a 23k citi card for 3k is unlikely in extreme.

lrhall41

Submitted by MichaelBovee on Mon, 05/07/2012 - 11:35

( Posts: 125 | Credits: )

We could only send a small amount and no it did not bring it cur

We could only send a small amount and no it did not bring it current. I am doing all I can to come up with at least 25%, I don't know what else to do as we have sold almost everything that we can.

lrhall41

Submitted by anonymous on Tue, 05/08/2012 - 10:52

( Posts: 202330 | Credits: )

Thanks for answering. It is important to know what you are up a

Thanks for answering.

It is important to know what you are up against.

Citi bank settlements target the 40-ish % range. There are instances where accounts are settled for 25%. That happens less often right now.

You may experience further complications if you are keeping other credit card accounts current and not paying them. They have real time access to your credit report and will raise objections if they see this.

If you cannot come up with the money to settle your credit card directly with citi bank, you will have opportunities once they assign it out for collection.

The longer it takes to raise the money to settle, the more your risk of being sued increases. You are at a higher risk with a citi balance that size.

What state do you live in?
When did they last receive a full payment from you?
When did they last receive a partial payment?

lrhall41

Submitted by MichaelBovee on Tue, 05/08/2012 - 11:35

( Posts: 125 | Credits: )