I was told by my Citibank that the only way I can settle my debt out is if I'm disabled or terminally ill.

Does that sound right? Or are they just making it difficult for me?

Posted March 6th, 2010 in Debt Settlement.

7 comments:

  1. ♥ BTriX♥♫:

    Wait till it goes into collections – then you can negotiate and settle.

    My husband had almost $10,000 in debt and was able to settle it for $2000. So it can be done!

    March 6th, 2010 at 9:39 pm
  2. christopher s:

    You could try paying it off. That works everytime it’s tried. My Dad paid-off my sister’s $54,000 debt with one check. She doesn’t get those calls anymore…

    March 6th, 2010 at 9:39 pm
  3. Amanda H:

    They’re not required to settle with you. It is probably theirpolicy to only settle if you are ill/disabled.

    Everytime they settle they lose money and the ‘good’ customers have to make up for it with higher interest…

    March 6th, 2010 at 9:39 pm
  4. bigfree_2005:

    You can go to a credit counseling service. They would help negociate all of your credit card and other unsecured debt into one payment. They would also get the companies off your back.

    March 6th, 2010 at 9:39 pm
  5. chris m:

    They may tell you that because they want ALL of their money. There are a couple ways to do this; either consult an attorney or just stop paying them. An attorney will "lay it on the line" for them and they’ll realize you have no other options. You can also stop paying them. If you stop paying them, you’ll get offers to settle in a few months, usually for about 75% of the balance due. This may be settling with them directly or they may have sent you to a collection agency by then, but once you pay it off, it doesn’t look nearly as bad on your credit report.

    March 6th, 2010 at 9:39 pm
  6. Jonny Ringo:

    First of all – NEVER listen to people who tell you to stop paying your bills. That’s a sure fire way to get yourself sued. Then rather than worrying about not being able to settle, your going to be worrying about your wages being garnished and a civil judgment being granted against you.

    The reality is that no company HAS to take a settlement on a debt that is owed. Often times on delinquent accounts they will, but there is no mandate that states they must.

    If you have an account that is delinquent, and are trying to offer a settlement to get rid of the bill entirely, your best bet is to have the money you wish to offer at the time you place the call. Don’t hope for something ridiculous like 20% either – nobody is going to take that. Be prepared to pay at least 75% of what you owe. I’d start the bidding at 50% and work my way up if I were you. Also, and again, I’m talking about delinquent accounts, call the collection agency, or creditor delinquency dept towards the end of the month. Bill collectors are kind of like car salespeople, and at the end of the month, they’re a little bit more hard up for the fast cash, especially if they are having a bad month.
    Keep your discussion to the money. Dollar amounts and dates. Getting into how you’ve been treated by the creditor, why you’ll never do business with them, or berating the collector who refuses to accept your offer of settlement is not going to get you anywhere.

    Keep it reasonable, and good luck!

    March 6th, 2010 at 9:39 pm
  7. David D:

    There are some useful tips here.

    March 6th, 2010 at 9:39 pm

Leave a response:

-->