Looking for Debt Settlement Negotiation Tips

fact is almost all of your creditors will not settle till around 120-180 days before charge off, most debts charge off around 180 days late.

if you can post your balances and original creditors i can give a HONEST game plan, i have been doing debt settlement for 7 years. with this being said i am just trying to help

I think this is a GREAT thread, I do hope others will share tips, therefore I am going to keep an eye on this thread and continue bumping it!!

To add to the original poster's questions:

1. Do the cc companies initiate the settlement talks, automatically send you settlement offers, or do we need to bring it up settlement talk after 120-180 days?

2. During the settlement process, do we simply say we want to negotiate the on the original balance prior to the late fees and interest rate hikes when we stopped making payment?

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I have been told by other members here to let the OC bring up the settlement offer. I do agree being as friendly as possible on the phone with them can only help! In terms of hardship programs, I keep explaining that I can not afford the monthly payments. With debts in the tens of thousands, it's not feesable to make payments for years and years down the road. However, in my case, I have lump sums ready to settle with, so I've been starting to tell them that I may look into borrowing against retirement and if the creditor is willing to work with me that I'd wipe debt clean in 1 to 3 payments.

I agree that you need to be polite and not afraid to answer the phone and explain the situation. It is a tough thing to do at-first. Was for me and I bet for most of us, so just accept that and go for it. It get's easier talking to those folks.

I would disagree, however, and suggest that you bring up settlement at every appropriate opportunity. Tell them you want to settle the account and are not interested in hardship programs. Explain why you need to settle--your hardship story--, and don't be afraid to make an offer. If it is rejected, tell them well that is the best I can do right now. Once you get them making counter-offers you are in the game.

It will probably take several back and forths, so be prepared to have offers rejected.

If possible, decide early on what you can afford, and start out 20 or 30% below that, knowing that you will have to play the back and forth game with them.

Lastly, make sure you can actually afford the settlement. If you can't, don't agree to it and keep working them. I would hate to see someone make one or two settlement payments and then default.

Bottom line, this works. I settled 97K of debt and am now living a happy all-cash life!

Understand that most card companies will settle ANYTIME you are over 15 days late. Problem is they typically have a sliding scale depending on what stage of delinquency you are in. The first thirty days most will offer 90-95%. Some will go as low as 80%. In the thirty to sixty day (second stage of delinquency) window some on the forums have gotten as low as 55% but 75-80% is typical. It all depends on how many times you want to repeat your story and how much money you have to settle with. If you want the 20-30% deals you are hearing about you have to be willing to wait it out 120+ days and hope they don't litigate in the meantime (more risk= more reward).

I am attempting to settle close to 80k and have not paid in 6 months, but as I'm calling collectors I'm being asked to answer a list of questions about my income employment etc. They are claiming the only way to work a settlement is to give them this information and say if I decline they will sue instead. How do you handle this?

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Has anyone ever used Credit Advisors Foundation for debt consolidation? I would like to know the pros and cons. thanks

Thanks for all the great info everyone!

Citi $ 20,085
BMW $ 3,151
Amex $ 552
Bank of America $ 6,110
BOA $ 14,569
BOA $ 6,180
BOA Worldpoints $ 2,818
BOA Worldpoints $ 3,512
BOA Worldpoints Visa Sig $ 8,849
Chase $ 2,419
Chase $ 5,631
Chevy Chase Bank $ 9,017
Discover $ 4,244
Discover $ 8,564
Discover $ 4,343
PNC Bank $ 7,726
SonyCard Playstation $ 7,582

Total $ 115,353 :(:(:(


Here is my current debt. Things have been a mess for my wife and I. We've been juggling our debt between whatever cards we had available at the time, so we're both going to go through this process.



Unfortunately, I've been putting off totaling everything up due to stress, being busy, being lazy, and being in denial. I now realize I have no other options besides settlement or bankruptcy.

To make matters worse. I have my own business with business cards. I don't even understand how that works. They are business credit cards that I applied for. I pulled my credit report and I don't think I see them on there. I would appreciate if someone could shed some light on this situation.

Thanks

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[QUOTE=judd spa;662692]Thanks for all the great info everyone!

Citi $ 20,085
BMW $ 3,151
Amex $ 552
Bank of America $ 6,110
BOA $ 14,569
BOA $ 6,180
BOA Worldpoints $ 2,818
BOA Worldpoints $ 3,512
BOA Worldpoints Visa Sig $ 8,849
Chase $ 2,419
Chase $ 5,631
Chevy Chase Bank $ 9,017
Discover $ 4,244
Discover $ 8,564
Discover $ 4,343
PNC Bank $ 7,726
SonyCard Playstation $ 7,582

Total $ 115,353 :(:(:(


Here is my current debt. Things have been a mess for my wife and I. We've been juggling our debt between whatever cards we had available at the time, so we're both going to go through this process.



Unfortunately, I've been putting off totaling everything up due to stress, being busy, being lazy, and being in denial. I now realize I have no other options besides settlement or bankruptcy.[/QUOTE]


Hi there: Looking at your list of debt. Here's my take. Wouldn't be a bad idea to meet with a BR lawyer just to weigh your options. I think the Chase debt if including the chevy CHASE debt, can be settled for a great %. They will entertain offers even if cards are owned by say you and your wife. I just settled 2 chase cards a few weekends ago, My mom and dads, I think balance total was at or very close to 24K...They agreed to 4500, in payments. If your 3 Chase cards are essentially Chase, it's approx 18K...I settled my 18K with Chase for 6K, too high and they would have come down, but it takes time and the stress was killing me, but it's costly to settle too soon.

Looks like a huge chunk of your 115 is owed to BOA. I think you could get a great bulk settlement on all of them. Looks like 42K or so with them, figure starting low at 15% is 6300, probably for sure could work it at 10K or less. The Amex I'd just pay the darn thing. Citi is a PITA, but they regularly come down to 40-45%, so that'd be 8k, but if it went to a collection agancy like mine, I settled 22 or 23K for 28% it was a 4 pay of $1500...Discover is another PITA, and lastly the other cards I'm not very familiar with...Best bet, at least get the consult with a BR lawyer before you make any decisions, that way you know all your options...Best Regards

Your Amex is too small to bother with. Just pay it. BOA will combine all of your cards and make the collection a combined effort in one call....starting at about 90 days late. The call and letter will be from FIA CArd services...division of boa. I am not thinking you will do better than 25-30% of the balance...but if you are considering bk, perhaps. good luck.

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Sony card is Chase,



if youre really looking into doing this on your own, ALL of your B of As total up to being the majority of your debt!

if you have money to settle them all then charge forward! most people do not have the funds to settle everything at once , this being said you need to pick and choose your battle.


i would for sure attack B of A at first at 180 days late, if it goes past that? collection agencies are cool too, even lawfirms are cool, B of A gives low percentage rates for the assigned agencies.

then i would go after all your chase debt, NOW if chase gives a good deal upfront? take it right away, they seem to be on the lawsuit streak lately depending on what state you live in.


after that go after the little pawn debts and get it over with.

debt settlement is NOT an overnight process, it take take upto many years depending on your funds. keep in mind that anything is better than paying your minimums over 10-30 years triplig what you owe in the first place. do the math.

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If the original poster pays for the amex card or any other card for that matter, would he still be able to salvage and use the card that is not in default?

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Have similar problem but worse because we're retired. Maybe this is fruitless/hopeless but it's our last chance. We're a retired couple who turned 80 last year. Maybe it's also too little too late but we'd like to at least enjoy our remaining retirement years debt free. We currently owe $100K in credit card debts and don't own anything. We don't qualify for Chapt 7 & 13. We decided that if we continue to do nothing things won't be any better. Please advise us if consolidation, credit counseling, debt settlement hardship program, consumer credit counseling services, or something else would be best for our situation or drastically reduce the debt. Is there any organization or company that won't charge any fees? With our advance age and debt, we're concern that if something happens we don't have anything to cover emergency costs. Our world has turned upside down and nobody but us to blame. We also don't want to burden anyone. We truly hope to at least enjoy the fruits of our labor no matter how simple it will be or how long. If anything else, we hope this is a lesson learned for others. Thank you in advance for any advises/references.

Similar debt amount as Judd spa but worse because wer're retired and turned 80 last year. Maybe this is hopeless but it's our last chance. Maybe it's also too little too late but we'd like to at least enjoy our remaining retirement years debt free. We currently owe $100K in credit card debts and don't own anything. We don't qualify for Chapt 7 & 13. We decided that if we continue to do nothing things won't get any better. Please advise us if consolidation, debt settlement hardship program, or something else would be best for our situation or drastically reduce the debt. Is there any organization or company (consumer credit counseling servcies?) that won't charge any fees? It's a struggle daily, very stressful, and embarassing. With our advance age and huge debt, we're concern that if something happens we don't have anything to cover emergency costs. We also don't want to burden anybody. Our world has turned upside down and nobody but us to blame. We truly hope to at least enjoy the fruits of our labor no matter how simple or short it will be. If anything else, we hope this is a lesson learned for others. We sincerely thank you in advance for any advises/suggestions.

Sorry for posting again. My posts were not found for some reason.

Similar problem as Judd Spa. However, we may be in far worse situation. We're retired and have a current credit card (multiple) debt of $100K. We also turned 80 last year and don't own anything. Our pension is modest. Maybe it's hopeless/fruitless but it's our last chance via this forum. Maybe it's also too little too late but we hope to at least enjoy our remaining retirement years debt free. We don't qualify for Chapt 7 & 13. We decided that if we continue to do nothing things won't be any better. Kindly advise us if consolidation, credit counseling, debt settlement hardship program, or something else would be best for our situation to drastically reduce or eliminate the debt soon. Is there any organization or company such consumer credit counseling services that won't charge any fees? With our advance age and debt, we're concern that if something happens we don't have anything to cover emergency costs. Our world has turned upside down and nobody but us to blame. We are constantly stressed and worried. We also don't want to burdened anyone. We truly hope to at least enjoy the fruits of our labor no matter how simple it will be or how short it may be. If anything else, we hope this is a lesson learned for others. We sincerely appreciate any advises/references provided. Thanks.

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the business cards are under a tax id or a social security, it makes sense that it would not be on your credit report because its under your business name.

i have settled business debts for companies that went under and companies that are still open.

if its late they will settle, if its not they wont, they might ask about the business, simply tell them that your company is going under with this economy, they are going to fly out to your location to find out.

aka

[QUOTE=Anonymous;664707]the business cards are under a tax id or a social security, it makes sense that it would not be on your credit report because its under your business name.

i have settled business debts for companies that went under and companies that are still open.

if its late they will settle, if its not they wont, they might ask about the business, simply tell them that your company is going under with this economy, they are going to fly out to your location to find out.

aka[/QUOTE]

Are or Aren't? I would invite them to come check out how business is doing if it would help with the settlement!

Thanks for all the great info.

retireesindebt, I haven't come across any companies that will handle the debt settlement process at zero cost. While there are companies that are non-profit, they still charge fee's associated with the effort that goes into settling your accounts. If you're up to it, this forum is an incredible source of information that can provide you with all the tools you need to tackle this on your own. While I'm at the very early stages of this process, I do feel more comfortable with the process compared to when I initially set up researching my options. Read and keep asking questions, there are many many kind people here that will try to help you out!

If you are willing to do the work, you can settle all of this yourself. I would not recommend a debt settlement company. Just costs you more money

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I currently have about 12 payday loans that I am paying on. Totals close $10,000. I need some advice on how to stop this madness. Currently they are all up to date, but I cannot afford the fees now, let alone pay them off. How do I stop them from debiting my account? Please help.

What state do you live in ? Also can you give us the names and balances of the lenders and whether you got them off the internet or from a local store ?

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