What's the lowest amount you can settle a $10,000 credit card debt for with a bank?
I have a few delinquent credit card accounts, each with balances of around ,000. What is the lowest amount you think I can negotiate with each bank to settle the debt for? One of my credit card accounts is with a collection agency also. Will a collection agency usually take less than a bank?
Do you think I can settle for less than 20% in either scenario? Thanks.
No. You cannot settle at all, unless they decide that they want to settle; you cannot make them. Even if they are willing to let you settle (they can refuse), they will want at least 50%, and probably close to 100%.
August 28th, 2010 at 7:03 pmThat is between you and the bank or creditor.
You can offer anything you feel is "fair"…. but it is up to them to accept the deal or not.
At 10K per account…. my bet is they will sue you in court, add all the court costs and extra fees to it and have your paycheck garnished for up to 25% each time you get paid.
Keep that in mind when you offer them 20%…. and be advised that if they do accept you need to pay them in a lump sum right then and there.
August 28th, 2010 at 7:03 pmMany banks dont settle for less than 50% but it really just depends on which collector you talk to. The lowest you can settle is whatever they tell you. I suggest having a lump sum avail to negotiate with. Just tell them, "Hey I got a loan for 4000 to pay this debt off with"-of course the collector is gonna go up from that. You always want to lowball a debt collector because they are trained to go highest as possible. The debt collector will probably go to the next rounded percentage and offer you that. Just act like you are asking your brother or something for the rest of the loan and make the deal.
August 28th, 2010 at 7:03 pm20% is not remotely realistic.
August 28th, 2010 at 7:03 pmYou are more likely to negotiate a settlement for less with the collection agency than the bank. The bank will not be so willing to give you a discount. They definitely will not settle for 20%. It is more likely the bank will sue. You might get the bank to settle for 70% to 80% in a lump sum.
General rule of thumb in settling with a collection agency: if the debt is over 3 years old, offer 25; 2 or 3 years old, offer 50%; less than 2, offer 75%. Lump sum gets the best deal. Payment plans need to be short term. Get any settlement agreement in writing and do not give the collector direct access to your bank account.
August 28th, 2010 at 7:03 pmI hope they don’t accept 20% and clear your account!! Other customers like me can’t afford to keep bailing out over spenders such as you. Cost of write offs cause an increase in merchandise prices. Learn to be responsible for yourself. I know you won’t like my response but you are not "Entitled" to have others pay your debt.
August 28th, 2010 at 7:03 pm