Want to settle credit card debt

cece1014

LoanSafe Member
Hello, new here and trying to learn as much as I can. We are wanting to settle our credit card debt. We have 9 cards and are looking to settle on 7 of them. We have never been late on payments except a couple of times but paid next month. Problem is we have minimum payments that total almost $400/month. With one income which is self employment, money varies month to month it can be very difficult. I've had to make my payment and then turn around and use it to pay other bills or buy food. Obviously feel dumb for even getting in this situation but here I am. My question though, even though we aren't delinquent does anyone think or have experience of any success of offering 40%-50% of whats owed? Or do I really need to quit paying altogether and try to settle a few months from now? Not too worried about credit score going down as we have no plans of refinancing our mortgage or taking out any new loans. We own both our vehicles as well and no other debts. We have around $13,000 worth of debt and $7000 to hopefully settle with. Thanks for any advice!
 

Jzone

LoanSafe Member
Hello, new here and trying to learn as much as I can. We are wanting to settle our credit card debt. We have 9 cards and are looking to settle on 7 of them. We have never been late on payments except a couple of times but paid next month. Problem is we have minimum payments that total almost $400/month. With one income which is self employment, money varies month to month it can be very difficult. I've had to make my payment and then turn around and use it to pay other bills or buy food. Obviously feel dumb for even getting in this situation but here I am. My question though, even though we aren't delinquent does anyone think or have experience of any success of offering 40%-50% of whats owed? Or do I really need to quit paying altogether and try to settle a few months from now? Not too worried about credit score going down as we have no plans of refinancing our mortgage or taking out any new loans. We own both our vehicles as well and no other debts. We have around $13,000 worth of debt and $7000 to hopefully settle with. Thanks for any advice!
Unlikely that you will be able to settle if you are current on all your cards. However, I would not get delinquent on any of them and have your debt sold to a debt buyer. Debt buyers can be much more aggressive than the credit card company.
I would contact the 7 cards you want to settle and tell them your situation and that you want to close the accounts and settle.

Just closing the accounts will take a hit on your credit report, but since you are not concerned with that, go ahead. Debt is usually sold to a debt buyer after 90 days of no payments. You want to avoid that so I would offer 50% of the balance to settle on one card as a test and see what happens. If they say no, take it up to 60%, etc... It's probably more likely that you get a settlement but it will probably be in the 80% range.

Just remember that it will be much easier to work with your credit card company on this. Credit card companies rarely take you to court for the debt. In my experience, I had 6 cards and all were sold to debt buyers and 5 of those took me to court to get payments. That all stopped when I finally filed bankruptcy, but thats another story altogether.

If you wait to long and they sell to a debt collector, they will 100% take you to court to collect. Along with fees and interest that will sky rocket fast! Good luck.
 

cece1014

LoanSafe Member
Unlikely that you will be able to settle if you are current on all your cards. However, I would not get delinquent on any of them and have your debt sold to a debt buyer. Debt buyers can be much more aggressive than the credit card company.
I would contact the 7 cards you want to settle and tell them your situation and that you want to close the accounts and settle.

Just closing the accounts will take a hit on your credit report, but since you are not concerned with that, go ahead. Debt is usually sold to a debt buyer after 90 days of no payments. You want to avoid that so I would offer 50% of the balance to settle on one card as a test and see what happens. If they say no, take it up to 60%, etc... It's probably more likely that you get a settlement but it will probably be in the 80% range.

Just remember that it will be much easier to work with your credit card company on this. Credit card companies rarely take you to court for the debt. In my experience, I had 6 cards and all were sold to debt buyers and 5 of those took me to court to get payments. That all stopped when I finally filed bankruptcy, but thats another story altogether.

If you wait to long and they sell to a debt collector, they will 100% take you to court to collect. Along with fees and interest that will sky rocket fast! Good luck.
Thank you so much! I would be very happy to even to settle for 70-80%....the more I've been thinking over it. I may not get everything paid off just yet but I am hoping to at least get the 3 big ones that way I can work quickly on the small ones. My fear is calling them really. I get nervous and everything I've been reading is saying they won't settle if your current. It never hurts to try though I guess. Appreciate your input!!
 

Jzone

LoanSafe Member
Thank you so much! I would be very happy to even to settle for 70-80%....the more I've been thinking over it. I may not get everything paid off just yet but I am hoping to at least get the 3 big ones that way I can work quickly on the small ones. My fear is calling them really. I get nervous and everything I've been reading is saying they won't settle if your current. It never hurts to try though I guess. Appreciate your input!!
If you do decide to stop paying, make sure you are in close contact with your credit card company at 30 days and 60 days late. Remember at 90 days late they will probably close your account and sell the debt to a third party. So the time to make a deal is between 60-90 days.
 

OneHugeMess

LoanSafe Member
Hello, new here and trying to learn as much as I can. We are wanting to settle our credit card debt. We have 9 cards and are looking to settle on 7 of them. We have never been late on payments except a couple of times but paid next month. Problem is we have minimum payments that total almost $400/month. With one income which is self employment, money varies month to month it can be very difficult. I've had to make my payment and then turn around and use it to pay other bills or buy food. Obviously feel dumb for even getting in this situation but here I am. My question though, even though we aren't delinquent does anyone think or have experience of any success of offering 40%-50% of whats owed? Or do I really need to quit paying altogether and try to settle a few months from now? Not too worried about credit score going down as we have no plans of refinancing our mortgage or taking out any new loans. We own both our vehicles as well and no other debts. We have around $13,000 worth of debt and $7000 to hopefully settle with. Thanks for any advice!
Who are the creditors, and what are ballpark figures of amounts?

Whatever you do, don’t tell them you want to settle. You want them to reach out to you first, when the account is in internal collections at the bank.

Tell them you can’t afford to pay anymore, once they start calling around the 30 day mark. Than, stop taking calls.

I’d then wait til about the 60 - 90 day Mark before attempting to settle.

American Express will never sell your account. Discover likely won’t either. Citi will sell after the charge off. Bank of America - is really based on the balance.

By the way, have you considered a DMP from a company like in charge? It may be a better option.
 

OneHugeMess

LoanSafe Member
Also — Capital One is the nastiest of them all. You’ll definitely want to settle the account with them, as they’ll sue over a $400 balance. Not kidding.
 

cece1014

LoanSafe Member
Also — Capital One is the nastiest of them all. You’ll definitely want to settle the account with them, as they’ll sue over a $400 balance. Not kidding.
Unfortunately we have 4 capital one cards. I think we are just going to try to settle whatever we can. Even if we have to pay 80% of whats owed. We just want to be done with it all. Don't want to chance being sued either.
 
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