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Do it your self settlement


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Hi, I live in California

I'm really dispirit for help, I guess this it the right place to get the professional and the right help.

For the last 4 years, debt piled really bad, after searching for help and calling some credit settlement agency’s, their fees is creasy, after reading some posts in your web site I noticed that I can do it by my self and save the $3,400.00 fee.

My creditors are: Discover, City, American EX, ATT&T and Microsoft Loan.

So fare I’m current with them all, all I can came up with around 13.000.00 that’s all I got in my pocket to settle.

-Do I have to be late in my payment to start the haggle with them?

-What if they send me to the court.

-Pleas explain as how I can start negotiate the balance with my creditors, which is

I owe them between 3 to 10 K each (total $23,000.00).

-Does this move will impact my job, they know my phone job and some of them know my checking account number through direct payment process.

-What is the starting percent for settlement?

-How I can fix the damage in my credit history and how long it will takes me to came out of this dark tunnel with good score.

Sorry for the much of the questions, but visiting you web site makes me feel I’m not alone, I’m sure that you can give me the right advice to dump this debt load which starts lately rowing even my marriage life.

Thank you in advance...

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If you are current with them, why do you want to jump to settlement all of a sudden, instead of just paying down on your balances.

The best bet is to call everyone of these creditors and request a reduced interest rate first and foremost... that will give you some breathing room while planning your next step.

Good idea is to make a list of all the creditors, what the balance is, what your interest rates are.. and figure what you can pay after calling to negotiate lower interest rates. Always work at paying the highest interest cards off first. That will save you money for the next highest and so forth going down the list.

Are you over your credit limit on any of these accounts? Give a try first thing though calling to negotiate the interest rates until you know how you want to handle them.

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Thank you for your quick response,

I acutely DID specially with the 2 biggest credit cards I owe them 16,000.00

One of them offer to slightly reduce the percentage not to mush only just for 6 month, and the other credit card did not accept my idea for reduction at all, furthermore the customer support told me in case of delinquent payment my account will be transferred to collection any they will be snappy, and rood not nice like us.

Now my plan is to pay of the 3 small accounts and leave the bigger for settlement later.

Let me know your opinion please. And how low the collection agency could go.

Thank you,

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Usually in the begining settlement will be close to the current balance... the closer you get to charge off that is when they start dealing with you. 180 days out, once it passes this.. you will have more rules protecting you... then you have with the original creditor right now. They are the ones that can be quite mean in fact.

The older the debt the less you can settle for, but this is most likely a few years out and unpaid... that is if they don't try to force your hand by taking to court.

If you know you can't get caught up on the accounts... best sit on them until after charge off. You really don't want to get delinquent... then play the game of paying enough only to cover finance charges, re-aging the account and just out right buying the creditor more time and more money... I have seen people make this mistake and what should of taken 6 months to charge off actually took better then 9 months due to them extending the suffering and making tolken payments from time to time.

Can be quite depressing, if you don't work the numbers and understand how fees and interest work... should you like a perfect example of this.. to clarify - I can break that part down perfectly. Be amazed what you truely over look on this part.

I will say I think you are going backwards though... would be more driven to settle maybe at least one of them big accounts and get them out of the way.

Still stumped why you don't pay them down across the board... then bid your time to pay the remaining balances down in combination to requesting lower rates... say every 6 months. Persistance can get you far on this part. That way you save them, and don't destroy your credit as the other route will result in.

Do you forsee a cash shortage in the future... that paying them down... you don't think will get them in a managable way to get a control on? Have you checked your credit score?

I know some people run for years... transferring debt to balance transfer special cards / and promos for lower interest rates... it is competitive out there.. if you have the room to run with it.

Just a shame to hear of you being current right now, and opting to step over that line... which will surely make you for some time once collections and charge offs show up on your credit report. Would stress that you think about this part hard.. I can give you plenty more pointers on managing finances to accomplish re-abilitating your situation should you be interested in hearing me out.

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