Credit Card Negotiation?
Best Ways to Settle Credit Card Debt FAST:
1. Hire The Best Debt Settlement Company
2. Do It Yourself Debt Negotiation Elimination
Have you ever negotiated debt with a credit card company and for what %?
I have for as low as 20%. I find most will go to 50% or less.
Some things to keep in mind: Usually it will save money but not your credit.
Banks will also wait a long time before they give you the best setttlement. Sometimes you just have to "wait it out." They usually won't settle at all unless you are late and as it goes from 30 to 60 to 90 to 120 to 150 days late the offers usually get better. I would try to do everything in writing, if possible. If you have to negotiate on the phone, don't send any money until you get it in writing.
Tax hook: You will usually receive a 1099 tax form for forgiven debt. This is treated as income and you will owe taxes. For example, if you settle $10,000 for $5,000- you will add $5000 to your taxable income. However, there is a way to claim "insolvency" that will let you off the hook for the taxes.
The above answers are assuming this is recent debt still owned by the original creditor (for example you have a Ctibank card and are still dealing with Citibank). If the account has been sold to a collector or debt buyer, things are different. For one, depending on how old it is and who owns it is sometimes better to just ignore it.
If it's more recent and hasn't been "charged off" yet, you can usually get the best settlement right before it's charged off or during a lawsuit negotiation.
January 7th, 2009 at 7:09 pm
I have for as low as 20%. I find most will go to 50% or less.
Some things to keep in mind: Usually it will save money but not your credit.
Banks will also wait a long time before they give you the best setttlement. Sometimes you just have to "wait it out." They usually won't settle at all unless you are late and as it goes from 30 to 60 to 90 to 120 to 150 days late the offers usually get better. I would try to do everything in writing, if possible. If you have to negotiate on the phone, don't send any money until you get it in writing.
Tax hook: You will usually receive a 1099 tax form for forgiven debt. This is treated as income and you will owe taxes. For example, if you settle $10,000 for $5,000- you will add $5000 to your taxable income. However, there is a way to claim "insolvency" that will let you off the hook for the taxes.
The above answers are assuming this is recent debt still owned by the original creditor (for example you have a Ctibank card and are still dealing with Citibank). If the account has been sold to a collector or debt buyer, things are different. For one, depending on how old it is and who owns it is sometimes better to just ignore it.
If it's more recent and hasn't been "charged off" yet, you can usually get the best settlement right before it's charged off or during a lawsuit negotiation.
References :
Personal experience with negotiations, lawsuits,etc.
January 7th, 2009 at 7:23 pm
I negotiated a citibank c.c. that I had with my sister. I told them if I pay monthly until my bill is 0, don't charge me any finance or any other charges. That they agreed, but it took them a couple of months for them to stop the charges and I paid monthly until it was paid off. The balance was @ a little of a thousand dollars. I paid @ $100 a month. 0%
References :
January 7th, 2009 at 7:50 pm
Yes i have and the most you want to offer them is 40% of the debt they will accept it you can go to credit secrets on the web and learn alot good luck. just for your information you will get alot further with the creditors to if you talk to them with a calm knowledgable attitude.
References :
credit secrets on the web and credit secrets bible they are both wonderful websites.
January 7th, 2009 at 8:26 pm
Creditor’s debt collection calls should go straight to the credit card debt negotiation firm. Sometimes you will get a debt collection call by mistake and sometimes the creditors will try to sneak around the debt settlement firm. Once you have hired a credit card debt negotiation firm simply tell any creditor that does call you have hired a firm to help, give the creditor the debt settlement firm’s name, instruct them to call your firm and politely hang up the phone. Do not engage in a conversation with the creditor or their debt collector. Debt negotiation firms who work with secured debt such as mortgages and car loans do exist but most often are not the same firms who specialize in credit card debt.
read more about credit card debt at : http://www.card-gallery.com/article
References :
January 7th, 2009 at 8:39 pm
Yes, 35% on Chase.
References :
http://www.totaldebtsolutionsllc.com
January 8th, 2009 at 11:25 am
Yes Settlements vary by lender and are still evaluated on a case by case basis. If a borrower is a chronicly delinquent they are less willing to negotiate.
If there is a clear hardship for health reason for example they are more likely to settle.
January 8th, 2009 at 11:33 am
Check out the FTC Site and the FDCPA
http://en.wikipedia.org/wiki/Fair_debt_collection