Credit Card Settlements

[kelliedn]

Curious to know.  Can credit card debt be negotiated when you aren't past due?  I would love to get rid of most of my cards and the debt with them, but at this time I really can't spend much more than my minimum payments.

 

How would I go about doing this?  I believe I tried previously (years ago) and was told they couldn't do anything when my card was not overdue, or in default or something.

 

Kellie

[Harry Seaward]

Yes, you can file Ch.7 bankruptcy. Otherwise, no. 

[Trustfund Group]

Hey Kellie,

This can be tricky. Since you are already making monthly payments and are current, the likelihood of the credit card companies lowering your interest rate or principle is unlikely. Generally, they do not budge unless you are a few months behind. Once they see that you haven't been making payments, they will be more inclined. 

Have a good story. Talk to them about struggling to meet the monthly payments and how you won't be able to continue for much longer. Ask for information about their hardship program. This will shut your card down, but also prevent future interest to build. Ask them if they could reduce the principle if you borrowed money to pay off the debt in full. 

Keep fighting, don't take no for an answer. I dont recommend you stop paying your monthly bills, but sometimes thats what it takes to push them to lower your debt or interest. 

 

Bankruptcy is the LAST resort. Call your creditors and negotiate. See if they have a hardship program. I would even stop paying my monthly bills a few months and then call to try to negotiate OVER claiming bankruptcy. There are debt relief companies out there that will promise you pennies on the dollar, but try to stay away from these. There are a lot of scams in that industry.

 

I hope this helps,

 

Brad

Trustfund Group