How much Credit Card debt is too much to settle?

[shrinkingvioletssad]

Hello,

I was wondering if there is a limit to how much a credit card company will settle with you on. For instance, if I owed 17k to ... lets say Chase Visa, will they just get their lawyers jumping on it since it is considered a major amount?

Or if the amount is say....under 15k will they just say to heck with it and after 180 days or so, write it off and sell it to debt collection agencies? Or does the amount have to be under 5k?

I guess I am wondering if anyone out there knows what to expect with higher amounts that are owed.

Thank you so very much in advance for any insight.

[willingtocope]

Welcome...

There's no easy answer to your question. While your creditors will look at your personal credit reports before they decide how to handle your debt, for the most part, deceisions about whether to sue or nor have little to do with you or the amount of your debt.

Whether to "get tough" or to "let slide" debt is usually a corporate business deceision that is based on who's in charge, what they have to prove to their bosses, the current economic climate, the phase of the moon, and how likely congress is to come down on their silly business practices.

Reading between the lines, I get the feeling you're trying to decide whether to throw another couple thousand on the credit card before you stop paying. All I can say is...its probably not a wise choice...but there are no gurantees that you'll be able to settle for less than you owe either way.

[ben1381]

I am trying to settle debt in a high range with as much as 33K with one creditor of unsecured debt. I'll let everyone know what happens. It is a long process and I am happy with the way it is going so far.

[shrinkingvioletssad]

For replying to my post.

Do any of you ever feel like you have a lump in your throat?

I have been enslaved to credit cards since the 80's and I have

worked to the bone all my life until recently.

Tragic that I even HELOC'D my house up to $250k. It will... from my

vantage point.....NEVER be paid off while I'm alive.

I have lived in and loved my homestead since '89. Raised my 3

boys there, and got the dern HELOC in '06. Interest only the payments are

sooo high. Thought my business was going to thrive, and the housing market dived here in Florida. Sheesh, sometimes I focus on 'what have I done?' too much.

Thanks for listening without judgement.

[trueq]

$250,000 in credit card debt for $60,000.

I still have $300,000 on the plate that have been "less negotiable".

I never, ever, reccomend "securing down", unsecured debt with a HELOC.

[shrinkingvioletssad]

How'd you do that? Wow!

It must be such a wonderful feeling.

Do you think you will have problems later on from that?

I'm serious, how'd you do that?

Your a genius.

Yep, I know now that I made a terrible mistake of putting my

credit card debt on my home HELOC.

What a mess I am in.

However, good for you, now you are free.

[trueq]

Still probably got $300,000 hanging out there somewhere.

I just drove a "hard bargin". Wrote many of them to talk about settlement via writing only. Let them name the %. Ignored any WRITTEN OFFERS (never accepted any verbal offers) over 50%. IGNORED THOSE WHO DID NOT RESPOND (Helps make a case later if they sue, that thy are not using court as "last resort".)

I'd offer 10% in response, some took 30% in the end. Some even came back with 10% or 15%, and I just wrote a check.

What I have left is mainly those that ignored my request to settle or were unreasonable (anything above 40% in my book). (So they deserve my full defensive legal wrath when they foolishly sue.)

I'm sure 1 or 2 will "get me" in court eventually, but I'm saving up to pay, if that happens. Even then, I will negotiate the judgment down, unless absolutely forced by some post "in rem" collection action where judge railroads my defenses by garnishment, attachment, or lien.

And if that, by some quirk, happens....I'm going to file a Ch. 13 (where you get to keep assets) to stay such a collection order and challenge that creditors claims, until they see the light.

And if that does not work, I'll just write the check.

[LorenaMarie]

Hey Vederveder

I'm glad you asked that question!!! I've got $20,000 on one card alone. Two other cards ... one for $7,000 and one for $8,000. All of them went CO last month. I've heard from a CA on the $8,000 CC, but nothing from the others. I'm feeling pretty confident from reading the posts about the two lower debts (though still a bit nervous), but I'm terrified about my ability, or lack of, to negotiate with the high dollar card! I guess I'm just taking a wait and see approach to the whole thing. Maybe I can get some good practice with the lower cards before dealing with the higher amount!

It's stressed me out to the point that I dreamt last night of a CA for the high dollar amount taking me to court, and the judge realized the CA as being the scum of the earth. The judge said, "You're such a nice person LorenaMarie, that I'm erasing your debt all together!"

Suddenly, I was standing next to Matthew McConaughey, he was smiling at me and I thought how lucky I was. But then, the judge was smiling at me, too ... and so was the scum of the earth CA attorney ... and then I realized! Oh my God! I was butt-a** naked!!!!! ARGGGHHHHH!!!!!