How do I settle my own credit card debt?

Question

I attempted to settle my own credit card debt, but all credit cards refuse to settle. They would rather wait until I'm 90 days late, charge it off or sell it to an agency and have me settle with them.
Any clues on how I can buy my own debt at 12 cents on the dollar like the credit collection agencies do?

Answer 1

There is no way an original creditor will settle or sell a debt that isn't even 90 days late for only .12 cents on the dollar.

That price would be for very old charged off accounts, not accounts that haven't even been charged off yet.

If that is the price you are requesting they settle for, it's no wonder they aren't willing to deal with you.
If you aren't even 90 days late yet and you want to settle the account (which will harm your scores worse than the lates already are) you will probably have to offer near to the full amount (you also might be able to get them to drop the interest that was charge after the date that you stopped paying)

Then, they will probably file a 1099 on you for the forgiven amount for taxes, which you would have to file as income

Since you aren't 90 days late yet, instead of trying to settle, you should try and get them to work with you in bringing the account current. See if they will lower the interest rate until you are current.

Answer 2

Debt Settlement, also called debt negotiation is an arrangement between a debtor and a creditor to repay a debt generally for a for a lowered payoff amount. When a debtor is not able to pay the debt any more for any reasons, debt settlement is the only option that remains.

Generally, only unsecured debts, like those accrued with credit cards , can be negotiated for settlement. This is because of the fact that there is no security attached with unsecured debts. Hence, the lender can't repossess anything. On the other hand secured debts, like home loans, mortgages, car loans etc. have a collateral attached to them and can be repossessed by the lender if a default on debt occurs. So, there is no debt settlement or negotiation with secured debts.

Many third party companies offer debt settlement and negotiation services. These companies contact both the lender and the borrower and negotiate on the behalf of borrower to get the repayment amount and terms reduced. These services don't come cheap. Some good debt settlement companies can get the debt reduced by 50% or more, but charge around 10-20% of the debt amount as their fees. Read more about credit card debt settlement at: http://www.credit-card-gallery.com/credit_card_debt_settlement.html

Answer 3

You can't do as collection agencies do unless you have the capital to buy a lot of red paper at once, not just your own.

Collection agencies have become big business. I can think of two that are currently listed on the NYSE. They are no longer staffed by ex-convicts or used car salesmen. Law schools keep churning out more attorneys each year, and right now their best opportunities lay in the debt collection industry.

It is much better to do as you are now by trying to keep the debt with the original holder. If you can take out a debt consolidation loan at a lower interest rate then this would be ideal for your situation.

Answer 4

Debt contract hurts your credit badly. Are you specific you do no longer suggestions ruining your credit for the subsequent quite a few years over approximately $3 hundred? as a replace of paying 7% for a motor vehicle loan, you will be paying 25% sooner or later in case you additionally can get a loan. Will you be waiting to get greater student loans and what would be the fee? Will it make it greater challenging to hire an condominium?

Answer 5

Why do you have credit cards to begin with? They are plastic loans. Dangerous.

You should go to a credit counseling service somewhere and have these cards consolidated. As soon as you are through, cut up those cards. Use two credit cards only for purchasing. Mastercard and Visa.

It's also best that if you want to buy something, use only checking or cash. It's better for you financially. If you don't have the cash, don't buy or borrow anything. You should learn to budget.

Answer 6

found a solution that worked better for me I can give you the number 877-243-3485 they got me out of debt in 24 months and brought my monthly down to about 50% of what I was paying. It was great, plus it didn't have the affect on my credit like a bankruptcy would have