Advice on what to do about MBNA Card

You could settle or enter a hardship program. At 60 days, you're unlikely to get a good settlement offer but you could start the back and forth process. I always offer 20% first and negotiate from there. With a hardship program, you'll basically "rehab" your account. Interest is lowered or eliminated and your payments are lowered. Once you make a few payments, you'll be "current." Since your account is already closed, this may be an option for you. With a $10k balance, you're likely looking at a $400ish monthly payment. They'll ask you about your income and your debts to determine if you qualify. If you think you can save up a few thousand in the next few months, settlement might be the way for you to go.

Hi HOF member, how many settlements have you gone through? 'I always offer 20% and negotiate from there', do you think creditors like CITI will even listen to it?

Ashley, if you want to go for debt settlement, I think you should start saving money from now. 'Coz, once BOA agree to a settlement, they would require you to pay the amount in a short time. As for me, I settled my $12,000 debt with them after being 180 days in delinquency for $3000. I paid in 4 installments.

Hi wannabedebtfree,

The rate (20%) advised by OhioGal is the base rate from where we start to negotiate with the creditors. It's better to negotiate from such a low % as you never know which creditor will settle at what percentage. We just want that you save the maximum amount of your hard earned money.

I've settled 3 so far - all around 30%. Just like in sales, start low and negotiate up to where you want to be. I don't have experience with CITI but have heard that they're difficult to work with and agressive.

BofA (which is MBNA) is pretty easy to work with.

Thanks for the information guys! I'll contact them to see if the options they offer are within my budget.

This'll be the first time I've ever had to do this, so it should be an adventure.

That's a great approach Ashley. If you take it as an adventure rather than a liability, then you will succeed. As OhioGal said, BOA is one of the most easiest creditor to work with. If you are lucky and you negotiate, you might be able to settle at around 20% as well. I have seen it!!!!

I'm not in the 20% club. The easy ones go 30%. And yes, I understand that once in a while there are settlements in the 20%'s. But mostly not so. They would simply rather sue. In my jurisdiction, they sue by the hundreds every day. All that said, and $150k settled in 9 accounts all around 30%, I recently settled my heloc at 20% Flat. So, go figure. Seems like they sometimes really hammer the low balances and then with a big one, they just write it off!

They hammer the low balances for two reasons:

1. They think it's more likely someone is going to be able to pay a small balance.
2. They think people with small balances are less likely to file Chapter 7.

I would call 866-833-6398 they don't take any upfront fees and you pay the creditor directly and they only charge a small fee after the settlement letter is sent directly from the creditor or it's agent. They can settle between 20-35 cents on the dollar.

Hi All,
So I received my first notice in the mail with an offer to settle. My current balance is $10,628 and the settlement balance MBNA is offering is $5,846, which is a forgiven amount of 45%.

What do you think? Should I try to negotiate for a lower amount?

Thanks in advance!

I would call them and tell them that you can't settle for that amount. You are only about 90 days out, so you should wait for a better percentage. My account went to a collection agency and I settled it recently for $3,400 on a balance of $10,800. I had run into some other financial difficulties and wasn't able to settle directly with Bank of A (formerly MBNA). They let me do it in 3 payments.

So I would hold out for at least 30-35%.

Greetings "[URL="http://www.debtconsolidationcare.com/forums/member.php?u=230885"]Ashley C[/URL]",

Hold out for 30%.

boa-the snake will cave in at 120-150 days.

Please keep us posted.
Regards,
King "Kash" Jabba Labba

^^^
Especially with all these CLASS ACTION lawsuits starting to SNOWBALL from this foreclosure mess, coming from a MANY State Counties, foreclosed homeowners, etc... It's going to cost BOA, Chase, etc... TENS of BILLIONS just to fight all these cases! Good news for us on the credit card end of things. They can't afford to let any accounts charge-off. They need to stay liquid as possible. They'll be GLAD to get 15-20% from us, rather than sell to JDBs for 7 cents on the dollar!

Thanks so much for the information. I'm going to contact them within the next day and begin the negotiations. I'll tell them I can't afford there 45% offer and see if 20-25% is doable.

Hi Everyone,

I wanted to update this thread in regards to my situation with MBNA. Yesterday, I had the nicest associate helping me and I finally took a settlement.

My balance is $11,132.61 and my settlement will be for $2,826, which would be 25%. I'll have them split these into four payments, since they want it to be paid in full by April.

I did ask for "pay for delete" but no dice on that one. I also asked if they could report it as "Paid in Full" and still no luck. They'll just go ahead and update and report it as "Paid/Settled" once I've made the last payment.

I'm awaiting my agreement papers in the mail, before I make a payment, just to make sure everything is accurate.

Did I miss anything? Is there anything I can do to get them to do a "pay for delete" or should I be happy with the current outcome?

Thanks!

This was my biggest debt (aside from student loans which are current) and it feels good to finally have a handle on it.

I settled with them 25-30% on a $13,000+ balance. I was happy with that. Also did it in 4 payments. Couldn't get them to do a pay for delete or paid in full. But I'm happy with the settlement.

Congrats!

Thanks Auburey!

Has anyone had any luck as fasr "Pay for Delete" or getting a settled account reported as "Paid in Full" with BoA?