LoveToKnow Creditcards:AllComments

From LoveToKnow Creditcards

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You have several different options when it comes to paying off your debt, but a lot depends on the status of your bills now and your ability to pay. Propose settlement only if you actually have the money to pay the settlement amount. If you know that you will not be able to make your payments, you may want to talk to a debt counselor to see if there is a way to avoid bankruptcy. Good luck!

-- Contributed by: Tamsen Butler

If you have the money available to settle the debt, your credit card comapny may be willing to negotiate with you. If the payment that you stopped was for a settlement, however, your credit card company may be reluctant to deal with you. Learn more about debt settlement with this article: How to Negotiate With Credit Card Companies

-- Contributed by: Tamsen Butler

I have about $40,000 credit card debt. I always made payment ontime but recently I have hard time to make my credit card payments. What is the best way to get out of debt?

-- Contributed by: scream

A month ago I paid to credit card company full amount of credit balance, but I had to stop the payment because my bank balance was negative. so I call my bank to stop the payment and I paid $36 to my bank. If I want settle the account balance with the credit card company does it give any problem lately?

-- Contributed by: worries

Caro, debt settlement is always a possibility, but bankruptcy may be an option as well. A lot depends on your current income as well as what type of bankruptcy you would file, if you do indeed file. I suggest speaking to a credit counselor at a non-profit organization, or a bankruptcy attorney, who can examine the actual numbers and let you know what is in your best interest.

-- Contributed by: Tamsen Butler

we have just sold our home (FORCED) and have a small amount of equity left. we were prepared for bankruptcy but my husband who is 73 & still working wants to try settling with card cos. on our own. we have over 100,000 in debt and 25,000 with which to settle. would this be impossible or even unwise at our age?

-- Contributed by: caro

Matt, consumers should not write "paid in full" on a check that does not actually represent a debt paid in full. Thank you for your comment.

-- Contributed by: Tamsen Butler

Actually it is not an urban legend that putting paid on full on a check will cause the person cashing the check to be bound by the stipulation. Look up full satisfaction & accord in your state law. Most states support this practice. There are requirements that the notice be conspicuous in my State, and they also provide the person that cashed it up to 90 days to realize what they've done and give you the money back. After that you are in fact, paid in full.

-- Contributed by: Matt

Kevin, have you contacted the lenders to try to work out a solution? If you truly can't meet the minimum payments - and have proof that this is the case - they may adjust the payment schedule. The debt will likely stay on your credit report for up to seven years after the date it is settled. Either way you will have blemishes on your credit report, and either way you will have to rebuild your credit.

Whether you should declare bankruptcy or not is a decision that should be made based on factors beyond what it will do to your credit score. If you are considering bankruptcy, talk to a bankruptcy attorney to find out what your options are.

-- Contributed by: Tamsen Butler

I owe to my credit cards large amounts and I can not pay them anymore due to not having any income, What I like to know is once I get my income rolling and can afford to settle how bad my credit would effected and how soon will get better? or maybe I should just file for personal bankruptcy?

-- Contributed by: Kevin

Paige,

You are right. Your credit history will probably reflect any debt settlement program you negotiate with your card issuer (such as if you negotiate a lower rate and close the card). If you are not late on your payments why don't you request a lower interest rate from your card issuer? Then you can take the money you save on the interest charges and apply it towards your balance - to eventually pay off your debt. This lower balance will be shown as a positive on your credit report and you will still achieve your goal of lowering your credit card debt.

-- Contributed by: SusanWeber

I would like to negotiate myself a settlement amount (no 3rd party) for the majority of my credit cards. I have no problem closing them out (except a few that I have had the longest) even though it will hurt my credit score for a little while...but would the cc company have the right to code my closed account for 7-10 years as some type of "debt counseling or hardship reduction" that could hurt my chances in the future for obtaining additional credit? I am not late on any of them I just want to pay them off at a reduced rate, but I don't want some type of hardship settlement to appear on my credit report.

-- Contributed by: Paige

Cris,

A credit card issuer may offer a certain percentage foregiveness on a large balance owed if the balance is paid in full. It is also common that part of the arrangement for the deduction in the balance owed is for the the credit card issuer to cancel the card and decline any future requests for a new card.

If you feel that you may want an Amex card for any reason in the future, then you should decline the offer from Amex for a 10% forgiveness, and pay your account balance in full.

Thank you for your question.

-- Contributed by: SusanWeber

as part of a re finance i got a check for payment to some credit cards. one was the Amex Blue card which i had a large balance on. i spoke to someone there and if i settled they would forgive 10% of what i owe but i will never be able to have an Amex again. is this something i should worry about? Please let me know.

-- Contributed by: cris

Paola, You are right to keep making your payments since that will protect your credit history. Usually a credit card issuer will not renegotiate the total amount due unless the cardholder has become delinquent on their payments. You should give the card issuer a call and ask the question. You never know what special program they may be running.

-- Contributed by: SusanWeber

Will credit card co.'s settle to lower your total payment due if you haven't been late?? I have been keeping up with the payments but am getting a big check and want to see if I owe $40,000 if they will take $34,000 or something opay the whole total, but don't want to ruin my credit by not payinf for a while just so that they'll settle. Thanks!

-- Contributed by: paola

Mark,

You may be responsible for their legal fees. You can confirm by checking the Terms & Conditions that came with your credit card or by checking the Terms & Conditions which are posted for the credit card on the card issuer's website.

-- Contributed by: SusanWeber

If a creditor refuses to accept your settlement and threatens to turn you over to the legal department, can you be held accountable for their legal fees or court costs?

-- Contributed by: Mark

Nancy,

You may not be able to negotiate a debt settlement; however, you may be able to request a lower interest rate which will reduce your monthly payments.

Thanks for your question.

-- Contributed by: SusanWeber

I am a student and went a little overbaord charging my credit cards. I want to do a credit card settlement, but I haven't missed any payments. Will I still be able to request a debt settlement from my creditors?

-- Contributed by: Nancy

Steve, Congratulations on your decision to pay off some of your credit card debt. And, congratulations on having an excellent credit score.

If you request lower rates and fees from your credit card company they will probably contact the credit bureaus to review your current credit situation. These bureau checks may negatively affect your credit score. Instead, consider making payments on your cards starting with the accounts on which you have the least amount of credit available. Lowering the percentage of credit line used on a card will have positive effects on your credit rating.

Thank you for your question.

-- Contributed by: SusanWeber

I am in the middle of a refinance for some cash out. The amount I am taking out I want to use to settle some credit card debt. My ultimate plan is to rid myself of nagging credit card debt that has gotten a little out of hand. I have excellent credit but see that I am in credit card bondage.

Can I maximize and try to settle my debt with credit card companies and if this is available, will I damage my credit. This is very important because my credit status is very important for employment reasons

-- Contributed by: Steve

Teresa,

I'm sorry to hear about your injury and the resulting financial problems. I suggest that you try to stay current on your payments so that you don't ruin your credit rating. Be sure that you are talking to the collections department, not just a customer service rep. If the first person in collections can't help you with a plan to lower your debt, ask to speak to their supervisor. Be insistant. They are not always easy to deal with so you must be persistant.

Thank you for your question and for visiting LoveToKnow Credit Cards.

-- Contributed by: SusanWeber

I had a severe back injury 26 months ago, which has progressed to me being disabled. I had a lawyer file for disability. In the meantime, I have charged up $11k on one credit card and $16K on another. I have sold my car-my daughter and I share, my house is up for sale. I have a business which I am slowly closing up. The credit card bills are not from frivilous charges. They are two years worth of house payments, bills, groceries, etc. Just trying to make ends meet. I have been late on the CC payments the last few months. I just found out that I will get my disability in another month, with a check for some back payment. I tried to talk to my CC company about taking off late fees, lowering the % rate, etc. They would not budge. There is no way I will ever pay of $27K in CC bills on disability payments--and raise 2 girls at the same time. I am to the point of filing bankruptcy. I am willing to try to pay a lump sum (from the back payment of disability) but I can't get the CC company to talk to me about it. Do I need to just fall through on some payments and let it go to collections first? Without these CC payments, my finances will be fine once I get the disability. I would appreciate any advice you could provide. thanks..teresa

-- Contributed by: teresa

Ellen,

A credit card company will usually not negotiate a settlement unless they feel that it is the only way that they will be able to get a cardholder to pay their outstanding credit card debt. They "settle" because they believe that some money on the outstanding balance is better than no money received from the deliquent cardholder.

If you want to lower your credit card debt, you should consider calling the customer service area of your credit card and negotiating a better APR.

Thank you for your question and for visiting LoveToKnow Credit cards.

-- Contributed by: SusanWeber

Is it possible to ask a credit card company to settle if I am not behind or in collections? I have some extra money and would like to settle who would I contact? The credit card company?

Thank you, Ellen

-- Contributed by: Elen

Chris,

If you are behind in your payments, you negotiate a settlement with the collections department of your credit card issuer. If you are not yet behind, your account will not have been sent to collections.

You may be able to lower your credit card rate by speaking with a customer service rep at your card issuer.

Thank you for your question and for visiting LoveToKnow Credit Cards.

-- Contributed by: SusanWeber

can you negotiate a settlement if you are not not behind yet but will soon be if you dont get some relief...

-- Contributed by: chris
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