What is the process of settling credit card debt?
I have been saving up money so that I could pay off a charge card that I racked up a few years ago. I maxed it out in trying to pay off a lawyer to help my husband fight for custody and visitation of his daughter. (And a crappy lawyer at that!!!)
I have saved up a good amount of money to where I can call and ask to settle the account, but I want to do this properly. And not screw myself more than I already have.
What is the process in doing so? What is something I should keep in mind or know before making that phone call? How should I make the payment: personal check, money order, bank check?
What letters should I have mailed to me BEFORE payment is sent? I just want to cover my butt.
Any advice is appreciated!
Well I thought you were supposed to try and resolve these things yourself because we’re capable. I don’t want to pay someone else to do it for me when I could make a few calls myself.
I’ve heard of lots of “debt resolution” situations where people get scammed. But I’m not saying a complete NO to the idea. I just want to be smart about it!
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2 comments
lilmissdisorganised on August 29, 2009 at 1:48 am
I have a couple of credit cards that are in collections. I have been paying them for a couple of years and one of them wrote to me recently offering me the chance to settle the account by just paying 50% of the outstanding amount. I couldn’t afford it so I didn’t respond, then a month or so later I received another letter off them offering me the chance to settle by just paying a third of the outstanding amount! My advice would be to phone up and offer them a third of what you owe, and if they refuse then ask them what they would be prepared to settle at. Haggle with them and tell them that you can pay it within 10 days if they bring it down. Once they agree, ask for a written confirmation from them before you make the payment.
Gone fishin' on August 29, 2009 at 1:48 am
Why not go through someone who does debt resolution. or go to the bank the card was issued.
For any payments always use a check so there is a paper trace. Never do anything with cash that you may have to prove later.