Have you ever settled/negotiated your debt?
Best Ways to Settle Credit Card Debt FAST:
1. Hire The Best Debt Settlement Company
2. Do It Yourself Debt Negotiation Elimination
I'm considering trying to negotiate down my credit card debt so I can pay it off, and I want to find out as much info as possible. I was wondering if anyone on here has experience with negotiating/settling debt, and if you have any tips or advice for me.
Thank you!
You can do it yourself, please don't hire a company to do it for you. They actually make things worse. Especially, if your accounts are not that delinquent.
Depending on the status of your accounts, you may be able to negotiate a settlement. Creditors would like to have something rather than nothing. You will either have to pay a lump sum or split it into 3 monthly installments; they don't usually go for more than 3.
I've had original creditors negotiate 20-50% off the current balance.
However, you're not guaranteed the original creditor will settle. Your chances are better if a collection agency owns the debt.
If you do manage to get a settlement, get it in writing before you send them anything. Creditors/CA always seem to have a memory lapse when it comes to stuff like this.
Also, if you do settle for more than $600 off, the creditor will send you a 1099C to file the discounted amount as income.
February 11th, 2009 at 1:49 pm
Scams are up when it comes to these companies.
For the most part they do little for you.
They charge you huge fees, and you could end up in court anyway.
Get a boook at your bookstore called credit repair for dummies and do it yourself.
Or call your local consumer credit councelling office - they tell you step by step what to do. Don't look up the number online - look in your phone book.
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References :
February 11th, 2009 at 2:35 pm
The previous answerer is very cynical. If it was taken out before 1 April 2007 you can get it cancelled altogether. There is a website http://www.bdebtfree.info that will sort this for you. Yes there are companies out there selling their services and some are cheaper than others but they are using the law against the lender and it is perfectly legitimate.
References :
February 11th, 2009 at 2:59 pm
You can do it yourself, please don't hire a company to do it for you. They actually make things worse. Especially, if your accounts are not that delinquent.
Depending on the status of your accounts, you may be able to negotiate a settlement. Creditors would like to have something rather than nothing. You will either have to pay a lump sum or split it into 3 monthly installments; they don't usually go for more than 3.
I've had original creditors negotiate 20-50% off the current balance.
However, you're not guaranteed the original creditor will settle. Your chances are better if a collection agency owns the debt.
If you do manage to get a settlement, get it in writing before you send them anything. Creditors/CA always seem to have a memory lapse when it comes to stuff like this.
Also, if you do settle for more than $600 off, the creditor will send you a 1099C to file the discounted amount as income.
References :
July 15th, 2009 at 10:50 am
Thanks for the the above information. When negotiating for 20-50% off of balance, will this count againt you on your credit report and will it count as a charge off?