Jump to content

need guidance


Anonymous
 Share

Recommended Posts

I have a credit card that is 10K. The account is in good standing. I pay every month. Would I be able to settle this account? Do the CC companies only settle with people that have a bad history of non payments. I would be happy to settle for even 75% What is the first step? What do I do first? How do I appraoch the CC company. Thanks for all and any help!

:)

Link to comment
Share on other sites

<blockquote>Originally posted by addicus

I have a credit card that is 10K. The account is in good standing. I pay every month. Would I be able to settle this account? Do the CC companies only settle with people that have a bad history of non payments. I would be happy to settle for even 75% What is the first step? What do I do first? How do I appraoch the CC company. Thanks for all and any help!

:)

In your situation, where your account is in good standing, I Doubt if any Credit Card Company would do a Settlement.. A suggestion would be to ask for some relief in regards to Interest rates .. I do not know how your other debts are ect.. But if you are not delinquent with your debts, I would not recommend a settlement. It is a Negative mark. A couple of questions?

1. How long have you been a Customer of this Company?

2. Are you making more than the required Minimum payments?

I would think that Asking for an interest rate reduction would benefit you if it can be done.. Again, I do not know the whole story.. But I do wish you luck in getting a solution to your Situation.. Take Care

RJ

</blockquote>

Link to comment
Share on other sites

Well, all of our accounts are in good standing. I've had this CC since '99. Sometimes I make bigger payments, but mostly I just pay the minimum. This past year I paid off two other CCs. So this is the only one I have left. I'd love to get rid of it, but I'm not making enough money to pay it off in a year. Tell me what you think I should do. What about that 7 year rule. How does that work? I guess I could make minimum payments and wait a few more years to pay this thing off. At the 7 year mark, do you just stop paying? How does it effect your credit? It seems like a strange idea. I'd love to hear from someone who actually did it.

Have a great day.

Link to comment
Share on other sites

If all of your accounts are in good standing then keep them that way. What are you talking about the 7 year rule? 7 years is how long negative info is reported to the CRA's. Has no bearing on your circumstances. Your account is in good standing and ought to be reported as such. Just keep paying as agreed and quit using credit and those balances will start dropping.

Have you called and asked them to lower the interest rate? The 2 cc you've paid off, call and ask about any available bt options at a lower interest rate.

Link to comment
Share on other sites

What ever you do - keep making minimum on time payments.

Check the interest rate on this card, if it is too high, look around for a better card that you can transfer the balance to and has a better rate. *** Just be sure to leave a $50 dollar balance on the card and pay the rest out by personal check to zero balance. Will reflect better on your credit report instead of balance transfer.

It is only once you have become late that the reporting for 7 years starts on your credit report from the creditor. You are not there - be sure to make sure you don't go there. You are fine now, just tread water and take care of this card. It will pay off so much more having good credit.

Link to comment
Share on other sites

When I spoke about the 7 year rule, I was talking about the idea that after a bill has been on your credit report for 7 years, they must not show the account anymore. It is something I read either on this site or another. It actually implied that if you've had an account for 7 years the creditor can't collect. Maybe it is a myth. Thanks,

Link to comment
Share on other sites

In regards to your understanding of the 7 years. What this means is that all "Negative" items remain on your report for that period. This does not include judgments, which remain longer, check your state's laws. After the 7 years, a collection is now considered "time-barred" and uncollectable. Another thing you have to understand is the SOL. What that basically says is that an OC has so many years to sue. If they don't within that timeframe, they cannot sue. It does not mean that they can not still try to collect. After so many years, a "good standing" CC and other types of accounts (Dept Store, etc.) will go positive and remain for at least 10 years, if not longer.

FOLLOW THE OTHERS ADVICE AND KEEP IT CURRENT IN ANY WAY YOU CAN. You can also send in an extra $20.00 a month over minimum. When you don't feel the loss, add another $10 or $20. You would be surprised how fast you can increase your payment to bring this balance down. I had used this same tactic to increase mine and it does work. A good example is to give up your daily Expresso and Bagel for the time being, or use it as a treat on payday. YOU CAN DO IT.

[Edit by retmar on Monday, February 17, 2003 @ 12:11 PM]

Link to comment
Share on other sites

Yes, what you are talking about is a different matter all together. Nothing to do with the credit reporting side.

This is how long the creditor legally has to collect on a debt from you. And this only starts from the time that you have become delinquent on the account. This is called the SOL (statute of limitations) this differs per state and also depends on the type of account.

Example Illinois

Credit Card SOL is 6 years, from the delinquency of the account. If the 6 years expires before they accomplish collecting from you than they are shut down.

But if before the SOL ran out, they decided to sue you. The SOL is now going off the judgment SOL which is 20 years here and can be re-newed which would give them all the time they needed to get wage garnishment or the such.

Will only stay on the credit report for 7 years either way but - that does not matter cause they can still legally collect on the debt.

Difference will be on the creditor reporting it will be out of SOL before having expired off the credit report. So you are dealing with multiple factors here for different types of accounts.

Link to comment
Share on other sites

If you can afford to settle for 75%, why not send int he $7500 to pay off the bulk of the bill. Then your minimum would be less, more going to your principal, and still have good credit.

If you are paying now on the 10 grand, it is going to take you twenty years to pay it off!!

Link to comment
Share on other sites

<blockquote>Originally posted by wert

If you can afford to settle for 75%, why not send int he $7500 to pay off the bulk of the bill. Then your minimum would be less, more going to your principal, and still have good credit.

If you are paying now on the 10 grand, it is going to take you twenty years to pay it off!!

</blockquote>

You do not settle and account for less than the full balance and keep your good credit.. As previous Members have said , keep paying on it. Get a part time job to supplement your income.. what ever it takes.. If it is not delinquent. try to keep it that way.. You will be better off in the long run.. especially if you are looking to get a Mortgage, or other secured loan in the future..

Link to comment
Share on other sites

A note of clarification if I may.

The 7 year limitation on reporting negative items is NOT the SOL for when a debt becomes 'time-barred' - meaning they can't legally sue you to collect. The SOL that time-bars a debt is dependent on STATE laws, NOT the FCRA or how long it been on your credit report. Even if an account has dropped off your CR, that doesn't make it uncollectable - they can TRY to collect until you die, but they can't ENFORCE that collection if the SOL in your state has run out. The longest SOL for credit cards in the US is Rhode Island at 10 years, the next is Wyoming at 8. The longest for the rest of the states is 6 and the shortest is 3.

IF a collector puts an old debt back on your CR after it has passed the 7 year REPORTING limitation, that's a violation of the FCRA and you can sue for that.

Link to comment
Share on other sites

rubyjean

You didn't read all my post.

What I said was if he had the money to settle for 75%, don't settle. Send in the 7500. That brings his account down to $2500. The minimums would be less and more manageable, the minimum payment would be less, and the account would still be in good standing until it was completely paid off.

I thought what I said was pretty clear.

Link to comment
Share on other sites

<blockquote>Originally posted by wert

rubyjean

You didn't read all my post.

What I said was if he had the money to settle for 75%, don't settle. Send in the 7500. That brings his account down to $2500. The minimums would be less and more manageable, the minimum payment would be less, and the account would still be in good standing until it was completely paid off.

I thought what I said was pretty clear.

</blockquote>

Sorry,

I did misread it.. My apologies

Link to comment
Share on other sites

I agree, keep paying on it and read below. No they won't settle. As long as you attempt to make payments and write a letter of explanation concerning your current financial crisis, they can't do squat to you. However making below minimum payment will irritate them, but you can demonstrate in any court that you making good faith efforts to satisfy your obligation. So it'd be fruitless to file anything against you in court. This is contract law and your agreement with them is a contract and you're doing your best to perform on your obligation. End of Story.

The rule of thumb is to send in about $15-$20 more than minimum, but if you're at 10k then the minimum is probably at about $200.00 so times might be tight. Now no matter what you're paying, you'll probably notice that the interest is calculated using the "Average Daily Balance" instead of the actual balance. So even if you paid that $7500 as suggested, you'll still owe $2500, but they'll charge you interest from last month's balance because you didn't pay it off. That's called 'reachback' financing and IT SUCKS!!!

So even if you're paying the minimum every month, you're still treading water. If you have good credit, find a different card and do a balance transfer with 0% for 6-12 mos if possible, then pay it down as much as you can before the period ends. You could bounce it around transfer-wise once the period ends, but be careful. Don't lock yourself into a worse deal down the road. Each balance transfer to the new credit card will cost you $40-$50 for balances over $1000.00. Even 2%-4% is better than this card you have that might be at 13-18% (I dunno, just guessimating)

READ ALL DISCLOSURES CAREFULLY!!!! This is one basic rule almost nobody pays attention to. But I'd recommend doing the Balance transfer option ASAP if possible.

Good Luck!

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.