Citi Settlement Offer Today
Date: Mon, 04/05/2010 - 23:54
[SIZE=2]We were surprised to received a 45% settlement offer from Citi via UPS two day overnight (27K current balance) at 35 days late. And wanted to provide some info on our situations and shed some lights on why we got an offer so early in the process. Note, it is more than we can afford and hope to settle for about 25% to 30% (will have to try to borrow from family and friends).[/SIZE]
[SIZE=2]Basic details:[/SIZE]
[SIZE=2]-We have three credit cards totaling about 75K (all are 35 days late and under husband's name)[/SIZE]
[SIZE=2]Citi -27K[/SIZE]
[SIZE=2]Chase - 25K[/SIZE]
[SIZE=2]Chase Business - 23K[/SIZE]
[SIZE=2]-Husband is unemployed.[/SIZE]
[SIZE=2]-We don't own a house.[/SIZE]
[SIZE=2]-I had a big pay cut last year and will most likely be laid off soon because company is going out of business by end of year also.[/SIZE]
[SIZE=2]-I borrowed money from my 401k to pay off a few other credit cards (15K payment in full) last year to reduce debt balance before we learned that my company is going out of business/pay cut and husband lost of job.[/SIZE]
[SIZE=2]We can no longer make the min. payments because of the lost of incomes. I will update on the Citi counter offer and hopefully chase cards settlements offers also.[/SIZE]
[SIZE=2]Thanks to all![/SIZE]
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It sounds to me that if you have no way of paying any settlement
It sounds to me that if you have no way of paying any settlements that you should probably consult with a bankruptcy attorney. Settlement is a great way to go but you do have to have the funds to do it.
Thanks, we considered bankruptcy but my husband is totally again
Thanks, we considered bankruptcy but my husband is totally against it eventhough we can file under ch. 7. It is looked upon where we are from and he feels that we should at least try to pay some of it back (as much as we can at least). I will cash out my 401k and borrow the rest from friends and family to settle these cards.
Yes if you can settle that is much much better than bankruptcy.
Yes if you can settle that is much much better than bankruptcy. The 45% offer in such a short time would tell me that you can probably get it much lower especially since you don't own a home with equity.
I bet if you wait about 90 days to 120 days you will get fantastic offers. Good luck and let us all know how it goes.
Hey Monkey, Good Luck with your settlements. I have settled $16
Hey Monkey, Good Luck with your settlements. I have settled $165,000 for avg 29% with WF, Chase, BOA/FIA, Amex and am working on my last cc settlement (which is the toughest). It is a regional bank and they are stuck on 50% at 180 days. I am considering letting it charge off.
I did not BK because of an interest in a small biz. They would have wanted to liquidate it to pay the cc's and then I would have no income and still have the bills.
I would call DS Financial they settled my citi card account for
I would call DS Financial they settled my citi card account for 19.5 cents on the dollar.
Citi Says they will report as setteled on the credit report and
Citi Says they will report as setteled on the credit report and issue me a 1099. How does the setteled will effect the credit in the long run,
Quote:Originally Posted by AnonymousCiti Says they will report a
Quote:
Originally Posted by Anonymous Citi Says they will report as setteled on the credit report and issue me a 1099. How does the setteled will effect the credit in the long run, |
Well, it hurts your credit, but your credit is probably seen better days if you are late enough to receive a settlement offer.
What I can say is that bankruptcy stays on your cr for 10 years... other info for 7 years max. So, you gain 3 years and it is not as bad as bankruptcy. But, as I told my wife....the 0% interest days are probably in the past.
Quote:Originally Posted by AnonymousI would call DS Financial th
Quote:
Originally Posted by Anonymous I would call DS Financial they settled my citi card account for 19.5 cents on the dollar. |
I bet they didn't! and for you to come in here and solicit the folks doing their best to handle matters on their own is not ok.
I agree with Dan, that statement of 19.5 cents is BS! Citi
I agree with Dan, that statement of 19.5 cents is BS!
Citi also sent me a 45% offer at 41 days late, and I took it. I offered then the same 45% on another account I have with them and they accepted so I settled that as well at 50 days. Chase is now offering 55% and I'm considering that, it's at 60 days +/-. AMEX is oiffering 70% at 81 days, I declined and countered with 50% and they declined...we are at a stand-off. Barclays doesn't want to settle at all yet so they'll get nothing when the smoke clears.