Hi,
I got a message earlier and I just called back. It was my creditcard company! They were actually a lot friendlier than I thought they would be...and to think I've been avoiding them :). Well, they offered to lowere my intersest from 25% to 2%, which is really cool but I still can't afford to pay them. Then I said something that triggered the person on the phone to say, "Oh, so you want to settle?" Then he offered to cut my balance in half (this is a BIG balance), but there was a catch- I have to pay off the account in 4 months at $1500 a month!!! Anyways, sorry for the long story. Here's my question- Do you think they will go any lower? I mean, that was their first offer and if I can't pay it what options do they have? They're going to write off the account as a loss anyways and I know my account is insured. Also, if I do settle can they sell the remaining amount to collections? I feel bad, but it didn't help that when times got rough they jacked the interest rate way up.
2007-01-26 05:46:22 · 6 answers · asked by macboy987654321 1 in Business & Finance ➔ Credit
Thank you!
2007-01-26 05:54:34 · update #1
Be very careful. If you settle, the difference is considered income and you will be taxed for it at year end. Also, it will show on your credit report as settled, not paid as agreed.
I would take the offer of dropping your interest to 2%. Pick up a part time job, whatever you need to do.
If they charge off the account, they can still come back and sue you and then you will have a judgment against you, on which it is highly unlikely you can make payments, and they will garnish your wages.
If they are willing to work with you, work with them!
2007-01-26 05:55:05 · answer #1 · answered by BMW BFD 5 · 1⤊ 0⤋
If you can't pay the lower amount but higher monthly payment then they wont go any lower they'll just keep taking money off you and adding on interest that's how they get their profit they're not a charity
2007-01-26 13:52:45 · answer #2 · answered by madamspud 4 · 0⤊ 0⤋
The lowest they can go to is what you actually put on the card. They can take off late payment fees, and interest they have added, but they wont pay for anything you got using the card.
2007-01-26 13:57:17 · answer #3 · answered by ashlet925 1 · 0⤊ 0⤋
Try a credit management company they can get intrest set at 0 and pay off what is owed at that time over a period of time. Good luck
2007-01-26 13:55:50 · answer #4 · answered by scokeman 4 · 0⤊ 0⤋
A lot of times, if you ask them if you can pay in settlements that you can afford either bi-weekly or monthly. They will allow you to do that.
2007-01-26 15:07:41 · answer #5 · answered by rawilson04 1 · 0⤊ 0⤋
you say your account is insured. doesn't that mean the payments are being made for you? if they are trying to get you to pay they will probably take you to court to get a judgement against you.
2007-01-29 00:51:31 · answer #6 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋