Ready to stop making payments
Date: Fri, 06/25/2010 - 10:33
1) since I am current with payments, should i inform the credit card companies of my plan to reach a settlement , or just stop making payments and wait for the phone calls and letters.
2) Is it true that debt resolution lawyers are able to get better settlements , therefore worth the 15% they charge.
3) Does it make sense to keep making payments on some the cards with smaller balances and low rates to help with my credit rating
4) I have 3 cards with CHASE. can these be lumped together or should they be handled seperately
thanks in advance IKrico
Quote:Originally Posted by kevinbass38I have decided to stop mak
Quote:
Originally Posted by kevinbass38 I have decided to stop making payments on my credit cards and try to make a settlement at some point in the future. My questions: 1) since I am current with payments, should i inform the credit card companies of my plan to reach a settlement , or just stop making payments and wait for the phone calls and letters. 2) Is it true that debt resolution lawyers are able to get better settlements , therefore worth the 15% they charge. 3) Does it make sense to keep making payments on some the cards with smaller balances and low rates to help with my credit rating 4) I have 3 cards with CHASE. can these be lumped together or should they be handled seperately thanks in advance IKrico |
like always, here's my .02 :)
1. i would in no way tell them your plan of action. if they know its a preemptive stirke they might be less willing to deal
2. not always. be careful of any company/lawyer that offers to get you a lower % settlement.
3. no because when you stop paying on the others your credit will be tanked anyway.
4. im sure they will be handled separately in regards to collection calls. as far as settlement they might cut you a lump sum deal on all 3.
1) since I am current with payments, should i inform the credit
1) since I am current with payments, should i inform the credit card companies of my plan to reach a settlement , or just stop making payments and wait for the phone calls and letters.
No. Informing a creditor of a strategic plan to default is not going to be well-received, to say the least. Just wait for the calls and letters and explain your hardship
2) Is it true that debt resolution lawyers are able to get better settlements , therefore worth the 15% they charge.
No, not in my opinion. We here do this ourselves and have better results than some pros. But that is up to you.
3) Does it make sense to keep making payments on some the cards with smaller balances and low rates to help with my credit rating
No. Your credit will be trashed regardless
4) I have 3 cards with CHASE. can these be lumped together or should they be handled seperately
Chase will advise you. They will be looking at all accounts when they discuss it with you.
thanks in advance IKrico
Thanks so much for the quick replies. with regards to the tras
Thanks so much for the quick replies. with regards to the trashed credit, at some point in the future when I try to rebuild my credit score , you are saying that the small steady payments made during this 1 or 2 year period wont help? or not enough to justify the money spent....thanks again ikrico
B of A 4,900, Capital One 4,150 each monthly payment is ar
B of A 4,900, Capital One 4,150 each monthly payment is around 100 bux
Quote:Originally Posted by kevinbass38B of A 4,900, Capital On
Quote:
Originally Posted by kevinbass38 B of A 4,900, Capital One 4,150 each monthly payment is around 100 bux |
oh, wow. yeah if those are the smallest balances i would for sure advise not to pay. you'll accomplish nothing trying to make those payments cause the balance will go no where fast. just add them to your do not pay list!
I agree, don't inform them. to me, it is not worth the 15%, do i
I agree, don't inform them.
to me, it is not worth the 15%, do it yourself if you can stomach it.
I think it is something called universal default, it you stop paying one they all will close you down.
Your credit is going to be harmed either way but if you settle it is only 2 years approx.
Bk will be more like 7.
Good luck and keep us posted.
Kaylee
Should i be worried about lawsuits? How can I avoid them?
Should i be worried about lawsuits? How can I avoid them?
Hellow Kevin, As long as you settle before they go to collectio
Hellow Kevin,
As long as you settle before they go to collections....I believe you will be okay. The point is not to have them go to a second party like a collection agency.....I settled most of my husband's debt a little after 120 days...between 4-5 months. Chase settled for $2,500 or a little over $10,000 debt...Chase was the first one to settle with us. Took money out of our account right away.
Our Citi cards were in pre-litigation after 4 months.....so that is about as far as I wanted to pusch it. I agree keep calling and letting them know that you cannot pay...and the reason behind it....keep repeating the same story because it is the truth....and don't change anything.....2-3 months the calls are the worst.
also, you may want to consider changing your contact info to your cell phone....that is what we did .....so my husband's cell rang off the hook and only one dept store CC called us at home ....which really helped! Good luck and keep posting
