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12-15-2012 at 7:04 PM
nic9911
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credit card pay off question

I have never posted her but was wondering, one of my co workers told me that he was able to negotiate paying off his credit cards something along the lines that they could not forgive more than x amount of dollars. Has anyone ever heard of this before. I have massive amounts of credit card debt and I am looking to clean it all up by the year end. I have the amount that I owe ready to go, but I was wondering if there was truth to this.
12-15-2012 at 8:37 PM
emily1004
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I'm not sure I understand what you're asking. If you're talking about a settlement of some kind I believe that only works if you are seriously delinquent and have gone into collections. You might be able to negotiate your interest rate if you are a good customer and always pay on time, but I've never heard of a credit card company just forgiving debt. HOWEVER, if you are not delinquent DO NOT purposely go into collections just to settle. That will kill your credit. 

Do you have more than one credit card? If you are up to date on payments, then I would recommend taking the credit card with the highest interest rate and pay the most on it, while paying the minimums on the others. That method makes the most sense mathematically. 

If you need it more on an emotional level, I hear Dave Ramsey's method works well. While I don't agree with everything he says, his method does work for a lot of people. On his plan you snowball the smallest debt no mater the interest. You can find his books online or at your local library. He also has a website.

 


12-15-2012 at 9:27 PM
vpine
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Back when I had cc debt, I would receive collection letters that they'd accept 20% less than what balance was, I did call and took advantage, most did this but only when collection agencies were involved. 

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12-15-2012 at 9:28 PM
nic9911
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Maybe he was in collections. That would make sense. I have several credit cards but they are all paid on time.
12-16-2012 at 7:13 AM
HoneyBee97...
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The cc debt has to be in collections in order for them to settle on a lower amount.  At that point they are just looking to get some of their money back.
 
12-16-2012 at 9:49 AM
smerka
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It also should be mentioned that if you have debt forgiven, you might owe income tax on it.  It depends on if you're insolvent (have more debts than assests) at the time of the forgiveness.

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12-17-2012 at 9:33 AM
HarleyKins
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Start listening to Dave Ramsey (www.daveramsey.com) - he often gives GREAT advice for those trying to pay down cc's and those trying to clear collections debt.

If you do make headway with the cc companies

1) get it in writing, even email - print it out and send with payment

2) DO NOT GIVE THEM YOUR BANK INFO - send a check.


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12-17-2012 at 11:49 AM
marianner7
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Bear in mind that if you settle debt for less than you owe, that will look worse on your credit report than if you had paid it in full. If you have the ability to pay back everything you owe, that would probably be better for you in the long run.
 
12-19-2012 at 8:59 AM
nic9911
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marianner7:
Bear in mind that if you settle debt for less than you owe, that will look worse on your credit report than if you had paid it in full. If you have the ability to pay back everything you owe, that would probably be better for you in the long run.

Thanks for the info. I was able to pay it all off entirely, along w my car, and one private student loan. Fantastic feeling. 

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