original balance on card was 756$ but they are charging my1550$ after interest and fee's. Court date is oct 10th and i am willing to settle out of court but dont want to pay too much since i have partially paid my time with 3 years of bad credit. Im thinkin of 500$ mark as paid as agreed and not settled. any lawyers/credit counseling people out there help me with the magic number i can pay in lump sum?!?! i would like some knowledge b4 i call them
2006-09-26 07:31:59 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
Your offer is reasonable especially since you can't cough up enough money for a reasonable "pay-for-deletion" offer.
Let the record show: You let this marinate for 3 years, probably in a feeble attempt to outwait the statute of limitations, but had you offered $500 WAAAAY BEFORE expensive lawyers got involved, you probably could have legitimately requested a pay-for-deletion.
Time matters!
Just remember: An ounce of prevention can save a pound of dissension. You waited til the 11th hour, played the poker hand you were dealt miserably, and now the credit card company is STILL taking all of the kitty PLUS your dignity.
This is a very jagged little pill to swallow.
2006-09-26 08:09:13 · answer #1 · answered by DaMan 5 · 1⤊ 0⤋
Because you let it go so long, the interest and fees just sky rocketed. Fees are assed like this: First interest on the balance, then late fees if the payment is not on time, then over limit fees. It's done that way so that the first two can bounce your card over limit, and they can assess the 3rd fee.
If you had contacted them months ago about wanting to settle it out with a lump sum, you may have been able to.
Now, the problem is, they'll look at it as you are only willing to pay now because you know you're going to get stuck with the charge in court. They know they'll win, and they'll win in the amount that the card is sitting at now, not at $256 cheaper than the original debt.
Were you making regular payments? Was it for the minimum amount due? If you were, then they'd maybe be willing to settle as well.
Most cards will not just cut the amount by 2/3rds, especially if you weren't even making minimum payments.
Call them first, find out what can be done to stay out of court, and ask what they can do to cut you a deal. Cancel the card, first and foremost. Then ask if they can cut the fee's and interest in half, and set up regular payment schedule. Send a payment as soon as this is done, if they agree to it.
Most likely, though, as they have already given you plenty of chances to pay it, they will not settle, you'll be stuck with the bill which will now be a court ordered payment (meaning you can go to jail if you do not pay it), it'll cost you court fees on top of the $1500, and it's going to look -very- bad on your credit report.
Credit card companies do not sue unless it's been quite a while since they've received payment. It's not a deal where if you miss 1 payment, they sue for it. They don't like the hassle of sueing people any more than we like to be sued. The fact of the matter is, to them, you are a dead beat. You accepted the card, you accepted the responsiblity, and you did not live up to your end of it. That is exactly how the credit card company will look at it.
See what you can do about getting it lowered, but don't expect a miracle, or even that they'll lower it at all. Expect that if you do go to court, you will be paying all the interest, all the fees, all the charges, and quite possibly court fees as well.
Good luck.
2006-09-26 07:45:57 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Call the collection company that sent you the statement. Let them know you will settle. They would rather settle than go to court. It cost them time and money also. Work out a settlement. If you can not pay the total amount, work out a payment plan.....they will work with you on this. But you MUST keep making the payments! or you will end up with another court date and the next time they probably will not settle. The only other thing is bankrupcy. But with such a small amount I wouldn't go there! Good Luck.
2006-09-26 08:05:48 · answer #3 · answered by Rea 3 · 0⤊ 0⤋
You have to put yourself in their shoes. What would they settle for to avoid the bad publicity of going to court, cost of legal ppl, etc to get this low-life out of their hair for good ? If you owe them a $756 balance they are going to want at least that. If you go to court, you will have to pay the $1550 plus court costs, I guess, so maybe an offer of $1000 will work.
2006-09-26 07:38:21 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If it's been 3 years since you made any payments, you may be able to have the case thrown out on the statute of limitations. Credit cards are considered open accounts. Click on this link, look for your state and check under Open Accounts: http://www.budhibbs.com/statute_of_limitations.htm
2006-09-26 07:34:29 · answer #5 · answered by Christian93 5 · 0⤊ 0⤋
you can only settle for the amount that they will allow you to. they are taking you to court so they have no reason to settle right now. if it has gotten to the point that they are suing you....it's kind of late to agree to a payment arrangement...good luck.
2006-09-26 07:41:21 · answer #6 · answered by stlouisrams1974 2 · 0⤊ 0⤋
people....this is proof that you should stay away from cards
2006-09-26 07:34:10 · answer #7 · answered by Anonymous · 1⤊ 0⤋