new to the forum and looking for advice on debt settlement
Date: Wed, 03/03/2010 - 11:11
now down to why im here. please bare with me as this might be long and drawn out.
i have about $20k in CC debit with 5 different companies (see bottom for amounts). i am going to be doing a DIY debt settlement but needed to get some clarity on things first.
also i am current on all of my accounts as of today and know that they have to be delinquent for some time. i am also aware that in no way do these CC companies have to settle!
1. i have recently done some balance transfers from my wifes card (was my balance we moved over and wanted to get it back on my card to settle) back in november of 2009. i know there is no certain amount of time to lapse before i start to settle, but i was thinking around the 6 month mark should be good. my main question is should that 6 months take into consideration the months that i don't pay, or 6 months and then stop paying? i.e. stop paying in april which will be 4 full months after xfer and then maybe 4-6 months of being delinquent, or 6 months after xfer and then 4-6 months of being delinquent for a total of close to 1 year after xfer.
2. i know this will affect my credit, but what is the ultimate goal i should look for to show up on my credit report (paid in full settled, etc.) and is there any room for negotiating that with either the CC company or collections if it goes that far?
3. 2 of my cards don't have xfers on them. is it better to do all cards at one time or can i start on the ones that don't have xfers? is there any way the other CC companies can tell that im trying to settle?
4. when the calls start coming in do i answer and tell them whats going on or ignore and wait until i get some type of settlement offer. if the latter, do they normally initiate the settlement letter or should i?
fortunately i live in south carolina which is a state that my wages can't be garnished, so i kind of got a sigh of relief there :)
i am not trying to get in to a payment plan either. i will have the funds to send them 1 lump sum and be done with it and start living a stress free life with my wife and daughter!
im sure there are a lot more question i have but i might not run across those until i start getting the calls and letters.
now on to the balances as of 3/3/10:
cap1- $3,625.28
boa- $6,463.26
disc- $5,584.24
chase- $1,722.39
amex- $2,797.92
total- $20,193.09 :(
Since you are considering doing it yourself, you may check out t
Since you are considering doing it yourself, you may check out the DIY corner for guidance.
Now, about your queries. You are right that the creditor won't consider settlement as long as you are current on your accounts. Hence, you have to stop paying them before starting your negotiation for settlement. Depending on your creditors, you may start getting settlement offers after 90 days of defaulting on your account.
You can either try to settle all your accounts at the same time or can 'pick and settle', for instance, you can begin with the accounts with smaller balances. However, you must have the money available while negotiating settlement.
Not necessarily you have to answer all the calls from your creditors, but it's important that you stay in touch and express your willingness to work with them, or else they may take legal steps against you.
thanks SC. also i'll be putting the money that i normally pay t
thanks SC.
also i'll be putting the money that i normally pay the cards with in a bank account with just my wifes name and will pretty much stop using the one that they have on file. they have no legal right to debit anything from my current account (there won't be any money in it) to try and get payment correct?
If you can borrow the money to settle now, how long does the set
If you can borrow the money to settle now, how long does the settlement process generally take? I'm assuming 90-120 days pass due? I'm asking because things I've read stated that it could take 1-2 years.
Also, is there an average time frame before the creditors will sue?
I have 11 cards. My first offer was from amex and I took it at
I have 11 cards. My first offer was from amex and I took it at 35% of the balance. We negotiated and that taught me a lot. I now look for settlements in the 20's but I am now at 150-180 days and have the $$ to settle.
Did they offer 35% right off the bat or did you guys work down t
Did they offer 35% right off the bat or did you guys work down to 35?
hey guys lets try and keep focus on what im trying to get out of
hey guys lets try and keep focus on what im trying to get out of this. if you got another question please start your own thread. i'd rather not look through a lot of posts that are related to my questions!
thanks :)