Should I settle credit card debt? Pay in full? What are my options?
I wanted to know what my options are in terms of settling old credit card debt. The debt was charged off in september of 2009 and now they are looking to seriously collect as I recieved an official "summons" with no court date. I called the lawyers office who are repesenting the creditors and they said I can still mediate the account by writing a letter stating how much I can settle for or how much can I pay monthly on the account and they will report to the court the agreement and cease legal action. Is this really the case? or do i automatically have a judgement/lien against me being the fact that they took the step to start action with a summons. Called this morning and he said it is just the initial step. How do I approach this?
Should I write a letter to settle the account? For how much?
Should I pay monthly and then settle later on or pay in full over time?
I cannot afford to pay in full up front. Just graduated in 2008 but just started working full time.It is an old debt and credit cord from my college years coming back to haunt me. I use to make regular minimum payment without missing a beat until mid last year and then they charged it off.
Now it is at a collection company who is now being represented by a collections attorney company.
I am interested in pay for delete off my credit report but do understand that it would remove my oldest credit account on my report which would negatively affect me. How should I apporach this and what should I state in my general repsponse letter to them?
the account is about ,000 from student credit card from bank of america. It is now with cavalry portfolio after going through FIA CArd services.
I just could not afford the payments at the time
Does the summons and/or me sending a settlement letter to them after the fact show up on my credit report as a consent judgement or just a charged off account being paid on?
Cavalry Portfolio is a horrible, sleazy outfit…it’s about the worst collection agency in the nation…Don’t send them any written correspondence admitting to the debt as they’d use this against you
http://www.budhibbs.com/collectorpages/cavalry_recoveries.htm
- Pay for deletes do not work with charged off credit card debts…a charge off stays for7 years on your credit report regardless of what you do.
- When a debt collector first contacts you, you have rights under a federal law called the Fair Debt Collection Practices Act. Your first step should always be to request validation of the debt. Even if the debt is valid, request validation anyway.
Send them a letter via Certified Mail + Return Receipt (do not use regular mail) stating:
Per the Fair Debt Collection Practices Act, I am requesting written validation of this alleged debt, to include a copy of the original signed contract with my signature. I cannot respond to your claim until validation in this form of a copy of the original signed contract with my signature has been presented.
————————————–
To speed things up, fax this same letter to the collection agency. Free fax service at: http://faxzero.com
When they call back, tell them: I have sent a certified letter to your office officially requesting written validation of this alleged debt per my rights under the Fair Debt Collection Practices Act. Per this federal law they must provide written validation within 30 days and they must cease collection activity until they send you written validation.
==================
- Debt collectors love nothing more than to pretend to be (or represent) attorneys when this is not the case to scare people into paying them. If they threaten you with a lawsuit/legal action, then ask for their attorney’s full name and license number in the state bar association.
- The way to pay off defaulted credit card debts is to settle for less….If you have the money, see if they’d settle for $800 in full…..get all terms in writing BEFORE you pay
Assume that any promise from Calvary Portfolio is a lie…Don’t give them your checking account numbers.
June 30th, 2010 at 4:37 pmHere is the thing. If you go to court you will lose and have a judgment against you for the entire amount. If you don’t go to court, you will get a default judgment for the whole amount as well. Call the attorney representing the debt collector and tell them that you would like to discuss a settlement. Offer 40% of the balance to settle the matter. They may tell you that they can’t negotiate, but the’yre full of it.
June 30th, 2010 at 4:37 pmRemember that the credit card company has already written off your account, so anything they get will be a bonus to them. But it’s worth it for your credit rating to settle with them.
Offer them 30 to 40% paid over one year (if you offer to settle up front, they’ll think you have more money). I’d start with an offer of 1/3 the balance. They’ll whine and complain, but don’t back down. Keep saying that’s all you can afford. They’ll ask for details of your finances, but you don’t have to provide them. Don’t settle for anything more than 50% of the outstanding balance. Then send them 12 post-dated checks, and you’re done.
June 30th, 2010 at 4:37 pmFirst, forget about pay for delete. It does not work for regularly report items like credit cards. The original creditor’s charge off remains. Collection agencies can only remove what they report.
If you send a settlement letter and they accept it, it will very likely become a consent judgment. But your alternative would be to go to court and get a judgment for the full amount. At least you can negotiate the debt down and work out a payment plan.
Start your settlement offer at 50%. Detail the payment plan — due date, number of payments, etc. A larger initial payment would be good. Try to keep the payment plan under a year — the shorter the better. They may counter offer, but you should be able to settle for less than 75% with a one year payment plan.
June 30th, 2010 at 4:37 pmSeattle out of court. Make payment arrangements.
June 30th, 2010 at 4:37 pmPaying the account in full is always the better option but since you are unable to do this right now I would suggest settling with them as soon as possible to get the account closed. Having a settled charge off is better than having an open one. If you make payment arrangements that’s just prolongs the process of getting it off of your credit. They can take you to court but just because you got a summons does not mean that there is a judgement against you. A judge has to order that. If you are not in the states of TX,PA,FL,NC, or SC they can evern garnish your wages. Settle the account and put it behind you.
June 30th, 2010 at 4:37 pmhttp://debtreliefreviews.net/top-debt-consolidation-companies/ has good information and several reviews for debt consolidation companies.
June 30th, 2010 at 4:37 pmUnfortunately, you are not alone with debt trouble. Besides, with the current state of the economy, things are tough and consumers have huge amounts of debt, including the US Gov! There are some consolidation programs out thereeto help, you may want to check some out.
June 30th, 2010 at 4:37 pmhello ,
If you are looking for site , that really works, the most trusted site online is http://DebtExpertAdvice.info .
They are top rated company…
Last year I joined them and they helped me to get rid of my debt.
That really works.
I hope that helps
June 30th, 2010 at 4:37 pm