because I thought the credit card company may not accept the offer of 40% or 50% of the debt.. and sue in court and win a garnishment.
The debt settlement gentleman on the phone said "don’t worry, less than 1% of people who sign up with us get sued", therefore I feel everyone can rack up huge credit card debt and sign up for it to only owe half or less.
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
I only have 1 credit card and it has a 00 limit only. I hear online about people saying they racked up ,000 or ,000 in credit card debt and can’t pay the creditors. My first question is how in the world did a credit company let this happen? And don’t most of these people have credit card limits?
I know for credit cards, you suppose to pay within 30 days or so and if you don’t pay, interest is piled on. But wouldn’t after say 6 months where a person can’t pay off their credit card bills, then the credit card company would shut down their account? I hear people talk about maxing out their credit cards but what in the world are they buying where they rack up credit card debt that is ,000? I mean, you can’t buy a car with that since i don’t think you can buy a car with a credit card right? And don’t most people have limits? I would think most credit card limits are max ,000 a month unless they have a very decent job.
Can someone explain how people rack up so much in credit card debt? Do they get 10 credit cards with 00/month max and then max it every single month for 5-6 months? I understand when people rack up debt in medical bills, student loans, taxes and those things but i just don’t get how can people rack up so much in credit card bills. I mean after a person owes ,000 to the credit card company and can’t pay it back, why would they continue using it? I understand if you use it to buy food and support yourself and your family but do people rack up credit card bills b/c of food? I don’t think so right?
And if a person cannot pay it back, i assume they can file bankruptcy right in the united states? And i hear people talk about fleeing the country because of credit card debt. Do they do so successfully? And usually what countries do they flee to? I’m sure canada isn’t one of them right since you can only say 6 months max? What countries do people flee to? Do they ever get caught? So if they stay there after a certain amount of time, wouldn’t they be there illegally? And since they have to support themselves and make money, wouldn’t the us government know that they are making income and thus could garnish their wages even if they live in the other country? Or do these people just try to make money off the table and just live and hide? I mean, are there people that have huge debt , leave the us and then become successful later on in the country they flee to and then become rich? Because if they do become wealthy, wouldn’t they be caught eventually for fleeing the country? If they then decide to pay back their debt after they made money, would everything be fine or would they face huge penalties for fleeing the country? Or do they just have to stay below the radar and can’t live in a nice place because of it?
I’m very curious about this because i read so much about credit card debt and people leaving the country. I just can’t believe a person could have credit card debt this high because i assume the CC company would freeze their cards after they don’t pay after a few months if the balance is high.
Hopefully someone can help me out. I have an old (about 5 years old) credit card debt of 09.00 which I am trying to settle for 00. In April the account went to a collection agency who offered to settle for 00. At that time I was in financial hardship and (divorce, single mom, unemployment, overextended) I did not have the money and could not accept. Now the account has went to a law firm. I called them and asked them to settle – they seem more interested in finding out how much money I make and my job than trying to settle. Of course I got upset and told them I would I would call the credit card company and they said the credit card company would refer me back to them. Shouldn’t they (the law firm) be working with me to try and settle this debt? What should I do? I also told them them that I would like my credit reported as "paid" after I gave them the money – they said they had nothing to do with the credit bureau. Help!!!
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.
I just got separated from my husband a few months ago and ever since then he has not helped me pay for any of our credit card bills. We owe a little over ,000 and most cards are unfortunately under my name because I had better credit score than him. One of the creditors started raising up the minimum monthly payment over 200% and the APR went up to 34 and I hadn’t even been late on it yet. I have not been able to pay on this particular account for a couple of months now and I’ve been getting letters where they say they can help me lower the APR and what not but first they want me to pay 00 to see IF I qualify. Would it be better to do debt settlement, consolidation or should I keep trying to work w/ the credit card company myself? And what companies would you recommend me using if any at all? Help!
A credit card company that i have been paying off slowly, offered me a debt settlement… will this hurt me more than paying the company off slowly? The settlement is significantly less the debt.
I was 3 months past due on my credit card. I sent a payment to bring it current. But two days later, I got a letter saying that it went to collections. The credit card company shows that my account is current. But now I need to deal with the collection agency to pay off the debt. Am I able to settle this debt with the collection agency eventhough it is showing that I am current? What are my options?
my status is like this ! I own about 4000 dollars cardit card debt but already went to a collector agencies .. I thinking about to call the my credit card company to settle with one payment! is a good idea or they will accept the offer?
I want to deal with the credit card company (original debtor) and not the collection agency. Can I still do that, or has the credit card company already relinquished its rights to the debt?
A few years ago I settled a debt with a credit card company and I had to claim the part of the debt that was forgiven as income. Now here it is about 8 years later and I am having to file chapter 7, with all the K in unsecured debt that I have, will I have to claim this as income too?
I filed chapter 7 back in Dec 2001 when it was discharged.
My credit card company supplies TransUnion scores and credit history every month and it shows that the derogratory item (which was 1 for bankruptcy) is now 0.
So was my bankruptcy removed and why was it removed after only 6.5 years?
I settled debt in 2009 dec, but didnt receive 1099-C… what should i do?
can someone help me? should I send letter to the credit card company? or should I check with the irs? or will I just get it as 2009 income and file next year?
the debt is not showing on my report anymore. i didnt see any settlement info on the report either.
i did settle with the original creditor.
I owe a credit card company from 1993. A collection agency is harrassing me for it. Some people say its too old and they cant do it if its that long ago. Can you help?what are my legal rights?amount is 00 but they are willing to settle for 00
Does it just go away and the credit card company / mortgage company book a loss? Or does it get consolidated or passed on to your spouse / family?
I received a letter in the mail from my credit card company asking if I want to settle my debt. We are a tad behind-:( What will this do to my credit?
The credit card company offered me a settlement agreement and to pay them %50 of what i owe them. they say them will notify the credit bureau and it will say: "settled as agreed" on the credit report. is there anyway for it to say "paid in full" even though its a settlement? thank you.
I have a debt that I would like to settle. It’s about 1300 right now and a lot of that is interest.
I would like to find out how much is actual principal debt and how much is interest and fees then come to an agreement for payment in full that is less than the total but is not a "settlement".
Would a credit card company or a collection agency that is working the debt be able to agree to a certain percentage of the principal as payment in full so that it doesn’t report to my credit as settled?
Also, once the principal is paid in full doesn’t that show as paid in full on the credit report?
My next question is about taxes. Isn’t it true that if you save over 600 on a debt payoff that everything you saved must be reported as income on your taxes?
I am getting laid off in 30 days and will not be able to pay my min premiums on my credit card debt. All together it equals 0 min a month. Around ,000 in debt due to medical and dental expenses that I paid with credit cards over the last 7 years. I have ,000 in 401K, and ,000 in kids savings. Should I cash out 401K and savings and even attempt to pay off the debt?? I am so over my head with debt. I was told to just file bankrupcy, but I want to avoid that as much as possible as my son will be attending college soon, and I need to co-sign for a loan. What should I do?? I was also told I can request settlent with credit card company?? What should I say and will they actually do it without a lawyer??
I had an attorney contact me yesterday at work about a credit card debt. He stated that they will not settle for anything but the total amount due which is way more than I can possibly come up with. He said that they will sue if I don’t send it in the next Twenty four hours.
Does anyone know if it would do any good to contact the credit card company directly? I thought I might see if they would perhaps set me up another payment plan, one that would pay the debt off quicker. Any suggestions would be greatly appreciated.
I have some old credit card debt that I need to take care of. I was finally sued by a collection agency and they got a default judgement against me. I am now in a position to settle the account. Would I be better off settling with the ORIGINAL credit card company? …. or the collection agency.
How will my credit score look after each situation? Will have have bad credit and for how long?
1. A Settled debt paid off for 30% of what is owed after no payment for 60 days.
2. A full payment made to credit card company after 180 days late, right before being sold to a collection agency.
3. A debt paid (whatever %) after being sold to collection agency.
Thank you I am curious scenario along on the credit report and what it will mean and do for my score.
I have a large amount of credit card debt that i would i like to settle. Is it better if i settle with the credit card company or wait till it goes to collections and settle with them? which way will i get the lowest possible settlement? thanks.
I made a settlement on a debt that i owed(00 dept i paid 00)I have not received a 1099 as of yet from the credit card company.Do i still have to declare this on my taxes.
I’m going thru a divorce & learning of thousands of dollars in collection & more that are delinquent & on there way to a collection. Yesterday I learned of a credit card company that will settle for a % of the debt. I contacted this company & informed them that I have never applied for a credit card in my life. They had all of the personal info on me needed to apply for a credit card. I have a feeling that my soon to be ex applied for & received a card in my name. They informed me to go to the police dept. & fill out a fraud/identity theft form. Is this the correct action to take? I had trusted that my ex was taking care of our finances but apparently she wasn’t. I will probably have to file bankruptcy. Should I do this after our divorce is final and the debts are divided or file together with my ex, before the divorce is final? I obviously want to know ALL of my debt that is out there. How do I go about finding this out? SOMEONE PLEASE HELP ME!!!!!!!!!!!!!!!!!!
I recently received a good amount of money from a work related injury and now have the opportunity to pay off the ,000 of credit card debt I now have in collections. Should I just pay the complete amount I owe or should I settle with the credit card company to pay only 25% of what I owe. This debt has been in collections for two years. What option would be better in the long run? I figure I’m already so late on payments how much worst can my credit get if I settle.
there are many companies that offer this service, they will contact
the credit card company that was owed and negotiate the settlement amount up to 40% of the total debt, you pay 15% of
the original amount. Is this a real service or is it a scam to hook you in , get 15% of your money then run ?
thanks
I don’t know how best to answer the summons. I have saved almost enough money to probably settle with the credit card company. I will get paid and have the last of the money in hand two weeks after I have to answer the summons in writing. Should I put this information in the answer or just answer it generically and hope they settle when my debt management company contacts them. My debt management company won’t contact them til I have the rest of the money in the settlement account.
I recieved a 1099c form from a credit card company for a settled credit card debt. The amount is for ,000. I only make ,000 per year. Will I end up owing on taxes due to being in a different tax bracket?Will the debt finally be gone?
I have 2 credit cards that total ,000, I was approved for those during my bankruptcy. I know this is my fault because i shouldn’t have gotten the cards, but I did. I was wondering could the credit card company be sued.