Pay Less Than Monthly Minimum vs Paying Nothing
Date: Tue, 12/15/2009 - 09:31
I'm about 45k in credit card debt and would like to try DIY Settlement before filing bankruptcy. I haven't missed any credit card payments yet, but can't afford the monthly minimum payment any longer on 3 of the 5 credit cards.
I was wondering if paying less than the minimum (around 25%) on the 3 cards I can't afford has any advantages to paying nothing at all when trying to negotiate a settlement offer.
I was thinking of sending in $50 to each cc this month and that would cover the minimum on 2 of credit cards, but is only about 25% of the minimum required on the other 3 credit cards.
If you are making an attempt to pay something would the cc company look more favorable on your hardship and be less likely to sue? If they did sue you could at least tell the judge you were doing the best you could.
However, would the 25% of the monthly minimum payment make the cc company less likely to settle with you, since you are at least paying something or would they consider that small of payment as if you had paid nothing?
I quess I'm looking for the best game plan to avoid being sued and having to file bankruptcy. Another worry is only having some of the credit cards to settle and still possibly having to file bankruptcy.
Thanks!
You need to decide if you're all in or not. Making less than th
You need to decide if you're all in or not. Making less than the minimum payments due on 3 outta 5 is not going to get you anything. IMHO, paying in full 2 of the 5 cards is gonna show on your CR and IMHO you'd be more likely to be sued. As far as letting the Judge know you've made some payments, it may make you feel better in the crowd if and when that ever happens but it's irrelevant in defending the suit...
My credit counseler told me do that for good faith to postpone s
My credit counseler told me do that for good faith to postpone suit process. I was only going to try to settle highest card that I cant pay anymore. should I do all three I wonder?I was going to include that in my letter to bank of america that I was going to try to pay something.
Thanks for the replies! My lowest credit card balance is $5
Thanks for the replies!
My lowest credit card balance is $550 and I'd like to pay it off this month and close that account and eliminate one headache. That leaves one other card with a balance of $3.5k that is less than $50 that I can pay. The other 3 cards have balances of 18k, 14k, and 12k that I can no longer make all the minimum payments on. I did pay the minimum on one of them earlier this month, but don't think I can do that on the other 2 larger balance cards and come next month I will have to not pay all 3 of them.
I read a book about diy settlement by Kenny Goldie and he kept paying on his 2 credit cards with the lowest balances while getting settlements for his credit cards that had larger balances. I know every case is different, but it didn't seem to effect his outcome.
I guess I'm still wondering about making $50 good faith payment to the credit cards I can't meet the minimum on and if it would help postpone the suit process.
Thanks!
And I quote "[URL="http://www.debtconsolidationcare.com/forums/m
And I quote "[URL="http://www.debtconsolidationcare.com/forums/member.php?u=198134"]maggie22[/URL]"...You need to decide if you're all in or not. Making less than the minimum payments due on 3 outta 5 is not going to get you anything"
I concur.
And my 2 cents worth.
If you are leaning towards settlement then you must get ahead of the ccc's.
Pay off the little one and cease paying the others.
That's just one less headache to deal with.
Don't worry, the phone calls will start after you are one week late.
Get your hardship story together and stick with it.
After about 120-150 days you'll be able to settle out with them.
During this time start chunking stuff overboard.
Sell off all of the excess items.
Ask questions in this forum.
You'll get great answers.
Good Luck!
Please keep us posted.
We've been there.
I settled 87k for 27k with the support of this forum.
Respectfully yours,
King "Kash" Jabba Labba
This will help you....
I thought this process of making good faith payment would slow down the suit process, but honestly, collection agencies have no control of when the original creditor will sue. I received financial help from Penny-Wise, you can check them out, they should totally be able to help you.
Quote:
Originally Posted by Anonymous Thanks for the replies! My lowest credit card balance is $550 and I'd like to pay it off this month and close that account and eliminate one headache. That leaves one other card with a balance of $3.5k that is less than $50 that I can pay. The other 3 cards have balances of 18k, 14k, and 12k that I can no longer make all the minimum payments on. I did pay the minimum on one of them earlier this month, but don't think I can do that on the other 2 larger balance cards and come next month I will have to not pay all 3 of them. I read a book about diy settlement by Kenny Goldie and he kept paying on his 2 credit cards with the lowest balances while getting settlements for his credit cards that had larger balances. I know every case is different, but it didn't seem to effect his outcome. I guess I'm still wondering about making $50 good faith payment to the credit cards I can't meet the minimum on and if it would help postpone the suit process. Thanks! |