A friend of mine told me that I could settle out my old credit card debt for .10 cents on the dollar. Has anyone had an experiance with this or could someone give me some information on how I would go about settling my debt?
2007-03-27 09:38:28 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
Yes, you can settle debts for .10 on the dollar. The debt would have to be charged off and with a collection company. You will have to fire the collection company by sending them a cease and desist letter. This will force them to send the debt back to the original creditor. Once that happens, you will contact the creditor and offer .10 on the dollar. Realistically they will probably take .25 cents. The OLDER the debt, and the longer the debt has been in collections,,,,the better your chnaces of making this happen. I have done this on at least 2 dept store credit cards.
2007-03-27 09:43:39 · answer #1 · answered by Justheretohelp 3 · 0⤊ 0⤋
I wouldn't say .10 cents on the dollar, but they are willing to take about half, depending on the creditor, how much you owe and how bad they want money. Unless the debt is already being reported adversely on your credit report, I would just set up a payment plan with the creditor. If they are calling an harassing you, you can settle for a certain amount, but this will be on your credit report for 7 years. Negotiate with the creditors, sometimes they are willing to report positively in favor of full payment! It never hurts to ask. Don't pay old debt without asking for them to report postitively. Sometimes its just not worth it if you have already defaulted on your accounts. I settled and payed off all of my old deliquent accounts, and my score didn't move. You need to turn that negative reporting into positive. I hope I am making sense.
2007-03-27 09:52:15 · answer #2 · answered by gracie-mae 3 · 0⤊ 0⤋
Great question. My husband is going through this right now. He was able to settle for much less than the actual debt when he called and told them he would pay them off. Not as low as 10% though(a bit higher). The catch: they'll tell you that you only get the "discount" if you pay it THAT SAME DAY. They're lying... they just try to put pressure so you pay them right away. So don't call unless you have close to at least half the amount of the total balance. They'll negotiate with you. You'll be surprised how much they'll deduct from the original balance. Make sure you also tell them to remove it from your credit. They don't have to but they can so it's worth a try :-)
2007-03-27 09:49:06 · answer #3 · answered by DminiknBonita 2 · 0⤊ 0⤋
How old is the debt? If it's close to 7 years old, just wait it out. You'll still owe it, but it will be off your credit report and won't hurt you. That way, you can settle for zero cents on the dollar.
2007-03-27 11:01:05 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I think you have to sign on with a company to field the requests for payments, and at some point you may have to declare bankruptcy. These companies are professionals, they deal with your creditors, and after so many months they work out a settlement, where your debt is reduced to some cents on the dollar (I don't know the specifics, maybe one third) If this is simple for you to do, go ahead. I would rather pay my bills on time. You could try calling the company yourself and asking them to work a deal with you, explaining the income you have available for payment, or they may refer you to a credit counseling service, and they can work out arrangements. If it is an old debt, they may help you settle it up and accept less.
2007-03-27 09:48:33 · answer #5 · answered by Marissa Di 5 · 0⤊ 1⤋
Most credit cards company's will settle for .40 cents on the dollar. Nothing less.
If you settle, it will negatively affect your credit for 7 years. And, you MUST declare the write off as taxable income on your tax return!
2007-03-27 09:41:36 · answer #6 · answered by kja63 7 · 0⤊ 0⤋
depends on the collection company....typically .50 cents on the dollar is more realistic.
call them..and figure out what half the amount or so would be.......tell them that ...you want to settle this TODAY...and tell them all you have is .25 on the dollar....they may come up...but ....they may take you up on it.
good luck
2007-03-27 09:41:24 · answer #7 · answered by hmmm123 3 · 0⤊ 0⤋
Yes, it is possible, depending on your present income status and the credit card amount along with its fines and interest, etc.
2007-03-27 09:42:17 · answer #8 · answered by cabridog 4 · 0⤊ 0⤋