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Your opinions on settling, please.


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I am considering sending a few of my credit card companies settlement letters. I am wondering how much I should request the settlement amount to be and whether or not I should try to see if they will accept a few installments on the settlement amount. The balances are:

$1745 on a $1550 limit (have been paying on time for past 5 monthsbut was late 4 months prior - I hate this card!!)

$1390 on a $1500 limit (was on repayment plan which I paid satisfactorily to get me under credit line)

$1358 on a $1450 limit (this card cannot be used because I set up plan with company, but is still in good standing so to speak)

$769.00 on a limit of $700 (Household Bank)

$590.00 on a limit of $600 (Household Bank)

My next questions is, should I start with the smaller ones first or the larger ones? (I don't want to send out 5 letters and they all say, okay, pay x.xx by the end of the month..lol) I was thinking more on the lines of paying off one each month if they give me the amounts I request. I was thinking about starting with the smaller one and then use the pymts from those to pay the larger ones.

Third and last question, should I also request pay for delete as I think having paid for less than amount owed is also as damaging as not doing anything.

Any help is appreciated and thanks in advance.

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Nobody will accept a pay for delete. You can pretty well bet your credit will take a serious hit since, you'll need to be 90 or more days late before they'll even consider settlement. Given these are such small amounts, you'll likely see only token settlement offeres.

This one where you're better off paying in full .

I'd see if they can offer you any hardship plans.

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Hardship plans. It's best to continue to work with creditor, so stay in contact with them and continue to work with them.

Most companies will continue to work with you if you stay in contact and make those hardship payments.

I would pay off those smaller balances ASAP and start to snowball the other cards; starting with the highest interest.

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  • 3 weeks later...

I would start with getting a name, address and a fax number from each creditor WITH AUTHORITY TO ACCEPT/DECLINE YOUR OFFERS and make them an offer of 15% of full amount only upon signing of this agreement.

Most likely they will not agree, you will do this repeatedly until such point that they become addicted to this?. (nearly 9 mos) once every month near the end of the month (becoz their collection cycle acctg closes). Choose to work with one and the same collector if at all possible.

You might get lucky even for a pay for delete if you have it in writing. You might also verbally ask to not have a 1099-C issued. Ask and thou shall receive. I bet you that somewhere in the BIBLE.

I have had success so far to get pay for delete however, it cannot be a chargeoff only a 90 to 150 days late.

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