Can you settle debt with a credit card company even in good standing?
I am making minimum payments with a few credit card companies but could have trouble paying these in the future. I don’t want to go through a debt consolidation company or a debt settlement company. Is it possible to call on my own and warn them I will file for bankruptcy and ask to settle before I stop paying for 30-90 days like most experts say? Can someone give me their advice or opinion on this? Thanks

Technorati Tags: bankruptcy, credit card companies, credit card company, debt consolidation company, Debt Settlement, minimum payments, settlement company

I had enquired to them about debt settlement and they said because of their long-standing relationship with credit card companies, they were able to settle my debt for $.40 on the dollar. I just wanted to know if they were a legit company and if anyone had heard anything about them before.

Technorati Tags: credit card companies, Debt Settlement, legit company, relationship

I have been a single mom for 9 years. I was using several credit cards for things we needed and actually was doing well making payments until the credit card companies began to increase their interest rates and amounts owed per month. My credit score was perfect. I never missed a payment. I began to be unable to pay what I owed due to increased monthly demands from the credit card companies. I spoke to a representative from Armored Debt Center who convinced me that they would settle my debts for amounts less than I owed, therefore giving me a chance to get out of credit card debt altogether and I agreed to pay 8 per month for them to do so. It seemed like the right thing to do for me and my family’s future. I have put a lot of effort into making that payment every month starting last October. Armored Debt Center told me not to answer calls from my creditors and sent me a script to basically get off the phone without telling them anything. I followed this advice. They tell you to tell the debt collectors that they are only to communicate with you in writing and then you are to fax everything to Armored Debt Center. When the first credit card company took me to court, I followed Armored Debt Center’s instructions to go to a particular website and retrieve documents to fill out. It was a website that anybody could have googled, not affiliated with Armored Debt Center. It was difficult to figure out what I needed to put on the documents that were to be sent to the court. At one point, I called Armored Debt Center and was told that they “cannot give legal advice” so I was left to figure things out on my own. I was told by Armored Debt Center not to worry, that this was part of the process. I filed everything the website suggested with the court. Prior to my court date, I called Armored Debt Center and was told nothing more than, “Don’t sign anything”. Judgement was awarded for the full amount, plus interest, plus court costs to the credit card company. I continued to keep in contact with Armored Debt Center and fax them everything that was sent to me. It would take up to several weeks for them to call me just to state that they received my fax. They have a well-rehearsed spiel that they give on a continued basis stating that “This is a process. Don’t worry. Keep faxing us documents sent to you. Don‘t give any information to debt collectors when they call you. Use your script. No further action is needed at this time.” They led me to believe that they would be settling with the debt collector “after my next payment”. This went on for several months with no settlement. Armored Debt Center did not settle my 44 debt with the very first credit card company that filed, after a full 12 months of payments at 8 per month. I had given them 96 of hard-earned money and they had not settled anything. Every time I would call, I would get the same run-around, rehearsed speech and be coerced into continuing the program. I would explain that other credit card companies were getting ready to take me to court. Now, the court has allowed the debt collector to garnish my wages by 25%. Because Armored Debt Center failed to settle with the first credit card company to take me to court and my wages are being garnished, I no longer have hopes of being able to get myself out of debt because I don’t have any extra money to give to a debt settlement company, or to save on my own, for such a purpose. At this time, my 3 other credit card companies have indeed initiated taking me to court and I have summons for those now.
I spoke to a representative at Armored Debt Center, Mark, about what had happened and that their debt settlement program had failed miserably. I called Armor Debt Center to ask for my money back for a program that had failed. He eventually said that he would give me back my “reserves” which was 38 but they would not refund their “service” fees which were 30. When asked what services they had provided for 30, Mark stated “education”.. Education on a program that did not work, that did not do me any good whatsoever, and in fact got my wages garnished and ruined my credit. My “education” was a script on how to get off the phone with debt collectors and what website to go to to fill out paperwork to send to court that anybody could have accessed. Upon further pleading with Mark, he stated that they would refund 3 to 4 payments. By the end of the conversation, however, he was saying 2 to 3 payments. Therefore, Armored Debt Center was intending to keep 98. I received an e-mail today asking me to sign a form stating that I will accept 32 back from them, which is only 2 payments and indeed would award them 98 for doing nothing that benefited me. I have been so stressed out, I’ve nearly made myself sick. I have heard that there has been a law passed to safeguard people from these debt relief scams. I have not yet had a chance to find out the specifics.

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I have credit card debt that I have the money to pay off. However, I heard that credit card companies will negotiate a lower amount, say ,000 instead of ,000 in order to get the cards paid in full.

1. Is this true?

2. Does this look bad on your credit report? Or does it even appear?

3. How does this work and how do you go about negotiating with them?

Thanks for your time!

Technorati Tags: cards, credit card companies, credit card debt, credit report, money, thanks for your time

I’m a 23 year old single female at a loss…Here is a rundown of my debt. A ,000 FHA loan that got foreclosed on, ,000 second mortgage, i’m guessing about 25k in credit card debt and another 30k at least in hospital bills. And here’s a kicker. One of the credit card companies is suing me.

The house is already foreclosed on and i don’t have a car so i don’t need to do the one where they save your house and car.

I’ve heard that a bankruptcy on you credit follows you for the rest of your life, but a foreclosure will fall off in a certain number of years. I want to eventually be able to buy a house again and have credit!

Technorati Tags: 25k, 30k, bankruptcy, credit card companies, credit card debt, fha loan, foreclosure, hospital bills, kicker, rest of your life, rundown, second mortgage

My wife and I are planning on filing bankruptcy. I went back to school about 6 years ago, racked up a ton of debt, and then just before graduating, I got did something very stupid and ended up in a 1 year legal struggle, followed by 2 months in jail, and 3.5 years in counseling/treatment/restitution/fines/court costs etc. The question I have though is this: I had 2 credit cards that were above and beyond their limit, and I told them a while ago to get bent, that I was filing, that was about 12 months or so ago, (it has taken that long to get enough money to file) I also have a rash of medical bills and other assorted odds and ends. But the 2 credit card companies have not sent me a bill in all this time. I don’t know if they went ahead, called it a bad debt and said screw it or what. But those were the 2 largest bills I had, and without those I may be able to dig myself out of the hole I am in. Is there a way I can find out if these are still outstanding?

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I have K in cc debt with an average of about 14% interest. Another K in 0% financed stuff, ,400 mortgage, and 0 car payment, 0 student loan payment, and another K in bills each month. Due to new kiddo and making almost half what i did due to sudden change at work, i can barely pay the minimum I need to plus just K towards my debt each month. I have stopped spending money on anything, but the interest and amount of debt is killing me, and im sure the credit card companies are just waiting for me to miss one payment to default me to 33.3% interest. Please no guilt trip on the amount of debt, i got stuck with alot of it after a divorce 2 years ago and i didnt even do the spending!!

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With over ,000 in credit card debt and not enough money to meet monthly minimum payments, is it better to settle balances with the credit card companies?

Technorati Tags: credit card companies, credit card debt, enough money, minimum payments

I know a lot of people are filing bankruptcy on credit card debt. I did this myself and got 35,000 dollars worth of credit card debt discharged. That means my credit card companies lost a lot of money on me. I know my credit is ruined but oh well. Unsecured debt should be more difficult to get. It is still easy to file bankruptcy if one meets the means test. Your opinion, please.

Technorati Tags: credit card companies, credit card debt, filing bankruptcy, means test, money, unsecured debt

I have about 10,000 – 12,000 dollars in debt. Mostly credit card debt. I dont have anything I’d lose if I did file except a washer.

I am being screwed over by credit card companies so I can never get my debt paid off. They keep changing minimum due dates on me and charge me late fees if I pay my bill a day early or one day late.

Their also uping my interest rate everytime I pay my bill late. I cannot get around that either as they keep changing due dates on me.

I really dont want to lose my washer. This concerns me if I file bankruptcy.

Furthermore, will this affect my future wife and us possibly getting a home?
Please do not judge me its not my fault I ended up in this mess. My debt would be gone if these credit card comopanies did not screw me over like they have. I would have this all paid off by now.

Technorati Tags: bankruptcy, credit card companies, credit card debt, due dates, interest rate, late fees

I recently did a loan modification on my condo and now I am being sued by several credit card companies. I just realized that my mortgage company now owns one of my credit card balance accounts and is seeking to get the money from me. I recently lost my job and am thinking I should just walk away from everything and file bankruptcy. I just don’t know what we will do in the mean time. I have no place for my 10 yr son and myself to go if we loose this place.

Any advice would be most appreciated

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I was shunned by my family and friends for filing bankruptcy, even though I had a job, but took a pay cut. They could not understand this and think I am a criminal for stealing from credit card companies, and should be in debtors prison for life. I am left with no one but myself. What should I do? Will I ever work again or will companies shun me forever also?

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This past year we settled on two credit cards. I am not sure the exact amounts as we were going through a debt settlement company. Anyway, I am wondering when the two credit card companies have to have our 1099 to us for our taxes. If they don’t send us one do we have to claim it on our taxes? When is the deadline for when they need to have it to us?

Technorati Tags: credit card companies, credit cards, Debt Settlement, exact amounts, settlement company

Hi All,

I have about 35,000 dollars in credit card debt and i am current on each one. I have a credit score of 780. My interest rates on 15, 000 is 4.9%. The one i am concerned about is the 20,000 at 9.9% with BoA…..I can make the payment with struggling at 316 a month i called and see what they could do for me lower interest or not they said no then asked to settle the debt they said they would settle for 12,000 without looking at the credit report pay that in four months which i believe i can do….Should i do it or just continue to pay all my creditors the minimum payment which i am doing now ?????? If i debt settle with BoA how bad does my credit score from 780 go down???

When i get bonus at work i just give that to my credit card companies i have stop using credit cards and hope to pay them off…..
Thanks everyone …..Just don’t know if i should mess up my credit score I good go from 35000 to 20,000 in a year with the settlement and probably pay everything off in 2 years with the boa settlement if not probably going to take 5 or 6 years……
Thanks everyone …..Just don’t know if i should mess up my credit score I could go from 35000 to 20,000 in a year with the settlement and probably pay everything off in 2 years with the boa settlement if not probably going to take 5 or 6 years……
In about 4 to 5 years i want to get another house….i currently own a house that i am current with all mortgage payments…The house would be the only big next purchase….
In about 4 to 5 years i want to get another house….i currently own a house that i am current with all mortgage payments…The house would be the only big next purchase….

Technorati Tags: 6 years, boa, bonus, credit card companies, credit card debt, credit report, credit score, creditors, four months, interest rates, minimum payment, mortgage payments, using credit cards

If debt settlement is reached with credit card companies, when will they generally complete the 1099C? I have received two different answers. The first is once the settlement has been reached. The second is when the account is actually closed. We have two accounts which we are considering settling. Cannot afford the taxes ramifications on "both" in the same year. Should we settle one in 2010 and pay on that year’s tax return and settle the other in 2011 to spread out the IRS payments?
The debt would be in excess of 0.

Technorati Tags: 1099c, credit card companies, Debt Settlement, irs payments, ramifications, tax return

If you have a credit card debt is it better to try to settle with the credit card companies, find a consolidation compay, or file for bankruptcy?

Technorati Tags: bankruptcy, consolidation, credit card companies, credit card debt

I’m selling my house and hope to net 25K. Do you think the 6 credit card companies will settle for the 125K down to 25K?

I have another job, but we are living paycheck to paycheck and can’t make these credit card payments. Any advice??
I forgot to mention that I make just over the amount to qualify for a Ch 7 BK and would have to do Ch 13 which I will probably end up having to pay back all the debts anyway..right?

Technorati Tags: 25k, bk, ch 7, credit card companies, credit card payments, debts, job, living paycheck to paycheck, paycheck to paycheck

I am trying to decide if i should just try to pay off my cards in full, or settle for a lower amount. But I am trying to get my score higher, so settling for a lower amount would show up at "settled" on my credit report and have a negative impact on my score.

So is it possible to settle your debt with the agreement of the credit card companie reporting that the debt was "paid in full" instead of "settlement" ???
"People with your thinking are what is driving this country into the ground. Oh I have too much debt, let me just walk away or try and "settle" the debt for half of what I borrowed.
Pay the debts off and keep your credit score and your character in tact. People like me are tired of paying higher prices and interest rates for idiots like you.
I know the truth hurts, but you need to hear it. I just hope it sinks in."

Yes I am the idiot….because I lost both my parents while I was in college and was left to fend for myself. I paid them what I could and my balances never went down. Credit card companies are criminals i"m my opinion and "driving" this country down, they feed off the poor. You Randy are the fool, read up and do your homework before calling someone else an idiot. Me not paying my credit card debts has nothing to do with prices being higher and you’re interest rates you clown. Greedy uneducated people like you give American’s a bad name, I hope that sinks in.

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After recovering from being very ill, I’ve got 40K in credit card debt spread over 4 credit card companies. I’m better now but no longer able to work.

I’ve got 18K in cash and receive just enough disability to pay my basic living expenses. I’d like to settle my outstanding cc debts with the 18K or less rather than file bankruptcy.

Am I dreaming to think all the credit card companies would agree to split up the 18K appropriately and agree to all debts settled in full?

If not a dream, how best to make this happen? Should I hire one of the firms I see advertised on TV out of the 18K or is there a way I could just do this myself?

Technorati Tags: bankruptcy, credit card companies, credit card debt, debts, disability, living expenses

I understand there are tons of companies out there who offer debt settlement programs. Some sound alright, others have been extremely annoying – after the only thing I really wanted was a consultation and some help understanding the program to begin with, they would not leave me alone!!! (Must work off commission). Anyway, I thought about negotiating with my credit card companies on my own, and one agreed (almost) to a 50% reduction. Sorry this is getting so long, but anyway!!!… How the heck do I pay that lump sum at once? When negotiating on your own, can you also request that discounted balance to be payable over a certain amount of months? Or should I just go ahead with a debt settlement company so I can make payments over 2 or 3 years? If I had a huge 00 cash wad (like needed for the debt reduced 50%, which is only 2 of my 5 cards) then I probably wouldn’t have such a financial problem. lol But I don’t have that kind of money all at once up front..so any suggestions!?

Technorati Tags: 3 years, cards, consultation, credit card companies, debt settlement programs, heck, lol, lump sum, money, settlement company, wad

I heard there’s ways to pay off debt for like 10% – 20% of what you owe. I’m just wondering how this works and how I can do it. I need to get out of debt fast as I need to rent an apartment. I would also like to get a new car, but I am ,000 seriously past due.

Please help me. This is getting so out of hand. Everytime I turn around I have another bill. I know I need to stop spending. I plan on buying that Rich Dad, Poor Dad book soon, but I just want to get out of debt.

I will be working an awesome job this summer and it would be a shame if that money went to waste on something. Which is why I’m looking for advice now before it gets to be too late.

I am looking at about grand to credit card companies, grand to hospitals and grand to banks and old phone bills.

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Was told by two attorneys that before I file Chapter 7 bankruptcy I need to be three months in arrears on my minimum payments.What should I tell the credit card companies? The calls are already non-stop.

Technorati Tags: arrears, attorneys, chapter 7 bankruptcy, credit card companies, minimum payments, three months

I am having a very time right now. I can’t find work and I am down to my last bit of money.

I would like to try to negotiate with credit card companies to either defer payments or to get the cost down without going bankrupt. I am afraid if I try to negotiate with them, they will immediately shut down my credit cards, which I still need. Does anyone have any suggestions for how to deal with this?

Technorati Tags: credit card companies, credit cards, money

What is the benefit of using debt consolidation for credit card debt? I am trying to decide to either call the credit card companies myself and negotiate for a lower payoff/settlement amount, or to use a debt consolidation company? If I negotiate with the credit cards directly, will that be considered a charge off? I would want to settle myself if I can to avoid paying all the months of high interest. But if I use debt consolidation, then they will charge me a fee every month for so many years? What is their purpose? What would be the best route to go financially?

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Two months ago I maxed out all my credit cards and opened an unsecured personal loan because I needed cash for family emergency. Now I have approximately ,000 debts from credit card companies and bank (all unsecured). After one month, I couldn’t afford to make the payments. For my situation, I don’t think I am able to payoff all the debt. What are my options now? When would the credit card company sue me? Can they garnish my salary? If the debt transfer to collection company, how much can I bargain off for a lump sum payment? Should I settle the payment myself or go to debt consolidation company? How many years the bad record would stay on my credit report?

I live in California. I’m working full time with ,000 annual salary. The only property I own is a free-and-clear car (2007). I might able to borrower ,000 from my girlfriend if a lump sum payment is offered.

Please answer as much as you can. Your help is much appreciated. Sincerely thanks.

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I am making minimum payments with a few credit card companies but could have trouble paying these in the future. I don’t want to go through a debt consolidation company or a debt settlement company. Is it possible to call on my own and warn them I will file for bankruptcy and ask to settle before I stop paying for 30-90 days like most experts say? Can someone give me their advice or opinion on this? Thanks

Technorati Tags: bankruptcy, credit card companies, debt consolidation company, Debt Settlement, minimum payments, settlement company

I must listen to at least 20 to 30 ads everyday on the radio about "secrets that the credit card companies don’t want you to know". I don’t have any debt, but can someone please fill me in?

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I got loads of debts from various credit card companies.

I think the only way out is to file for bankruptcy.
can anyone tell me how to go about filing a bankruptcy,
and how it works?

Technorati Tags: bankruptcy, credit card companies, debts

some credit card companies if you settle a debt with them for less than the amount owed the IRS will tax you on the rest as income
while tax payers have bailed out banks and now they are making huge profits

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I’ve been reading a lot about this because I’ve been trying to figure out how to go about settling my debt for much less with all my credit card companies and then just paying them off in full with the amount that’s left after the settlement (they are all in collections and have been for months). What I didn’t know until I started researching this, was that in some cases you do have to report this as income on your tax return. I definitely DON’T want to have to do that. So, two questions. One, what are the guidelines for being eligible to NOT have to report it? And how could I be 100% sure that I won’t have to fill out a 1099? Who would I talk to professionally about this before I decide to pay the debts off, and would I have to pay for their services? I need to do something about these cards soon, whether it’s pay them off or make a payment. Second, if for some reason I would have to report it on my tax return because I wasn’t eligible for not having to report it, is there anyway I could pay it off in full without negotiating a settlement, but still have them lower it? What I mean is, have them possibly take off all the fees that have accrued over the past several months, but not necessarily cut it down to 30-40%, so that it won’t be a settlement that will have to be reported.. so that the lump sum I pay them will be less than if I had to pay what the bills say are due right now. Also, any tips for negotiating with these people? I’ve never done this, only heard and read of several people who have. What do you say, how do you negotiate, how do you tell them you can "only pay X amount", etc. etc. and if I did settle in the end, how would I go about obtaining that statement that I needed to say from them that it was actually settled and paid in full? Do I make sure I get that before I pay or after?
Okay, also, so regardless of whether they settle it for less than 0 or more than 0, I still have to report it as ‘other income’ on my return? And if the amount I settle for is LESS than 0, I just don’t have to pay any taxes on that?

Technorati Tags: cards, collections, credit card companies, debts, lump sum