debt settlement .how ,whats reasonable?

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how low can i expect a credit card company to go on a loan settlement thy are offering 85% this seems very high. will they go below the Original amount charged minus payments. any advise for negotiating with them. please do not reply with referrals to 3rd party’s. i know this is best done by ones self just need advice and reasonable expectations. is threatening bankruptcy a good tactic if it is truly being considered. this debt is 9000 dollars at 25% and in default
it would be a lump sum . it is the o.c.
not concerned about credit rating
not concerned about credit rating

3 Comments
  1. Reply
    CatDad
    November 10, 2011 at 1:59 am

    If your card has completely defaulted/charged off, then 85% is a horrible settlement. 20 – 50% is the usual settlement for a default….HOWEVER, your creditors are under no obligation to accept any settlement…If you are still dealing with the original credit card company…then 50% would be about the best settlement…although I’ve head of settlements as low as 25% in this economy.

    Threatening Chapter 7 can be a risky tactic…they may call your bluff.
    – Creditors usually want settlements in one-time lump sum payments….they don’t like to give 50% settlements if you can only pay in small amounts over several years…so if you don’t have any money saved up to offer settlements then don’t waste your time making offers.
    – Paying back a charged-off credit card won’t fix your credit rating. The charge-off notation will stay for 7 years…even if you settle or pay the entire amount back in full

  2. Reply
    drive_55_not
    November 10, 2011 at 2:30 am

    I’m guessing the “”this debt is 9000 dollars at 25% and in default”” means you still dealing with credit card issuer not a collection agency,

    Like Cat said, if you are talking to the OC you will have much better luck getting them to agree to a longer term monthly payback than a collection agency, Figure out what you can absolutely afford say it’s 60% for 36-months and offer them 40% plus interest for 36-months see what they counter offer,

    Just work out what kind of payment you can handle and offer that, If they absolutely wont take less than what you can afford, tell them straight up. That they can squeeze you all they want but they ain’t no more blood in this turnip …

  3. Reply
    Debt Elimination Don
    November 10, 2011 at 3:07 am

    You should hold out for at least 50%. Depending on the creditor this is usually achievable. Banks usually won’t start debt settlement discussion until you missed your third monthly payment.

    I am not going to refer you to a third party, but I did have a debt negotiations coach who knew the debt settlement specifics for each creditor and knew which range they would settle at.

    Banks are motivated to settle before charge-off, which happens 6 months after you miss your first payment.

    The 85% number sounds like their opening offer. Time is on your side, just keep track of when charge off should occur because just before this you should get your best offers.

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