debt settlement offers when your not in default?
I’m not sure if this is even possible but can someone make a debt settlement offer if there account isnt in default? I’ve recently had an opportunity to work some over time and save some money and I have a few accounts that I would like to close out and pay off. I’ve heard of some people making offers with credit card companies to settle their debt and close their accounts but their accounts have always been in default where mine are not. If its possible how would I go about doing it.
Posted November 10th, 2009 in Debt Settlement. Tagged: credit card companies, Debt Settlement, money.
Credit card companies have no incentive to accept a settlement. They are very unlikely to do so unless you have some permanent change of finances, like medical disability. IF you do get a settlement, the account would be reported to the credit bureau as charge off/settled — a negative. You would also receive a 1099 for the forgiven portion which would have to be included on your income tax return.
Don’t believe all the TV commercials for debt settlement companies. They will only take you money and screw up your credit.
Instead take that extra money from the overtime and squeeze your budget to put it all on the highest interest rate credit card while making minimum payments on the rest. When the highest rate card is paid off, move to the next till they are all paid in full.
November 10th, 2009 at 2:17 pmNo company’s wont consider settle with you because your not past due. Also settling your credit cards ruin your credit it’s best to just pay off. Settle is the next best thing to bankruptcy. You also will be sent a 1099 if you settle for anything over 600.00 on all your accounts.
November 10th, 2009 at 2:17 pmYou can offer anything you want at any time. Just send a letter saying "I offer to do xxx if you agree to xxx."
However, they may accept or decline the offer. Contrary to the fraudulent commercials that have been on the radio, no credit card company is required to allow you to settle. You can settle only if they are willing to let you settle.
November 10th, 2009 at 2:17 pm