Settle Credit Card Debt

I am in search of a company or method that will allow me to settle or consolidate my credit card debt. I have researched some companys but I am not sure what is real or a scam. Fidelity debt solutions is one of them. Has anyone had any luck with any of the debt consolidation programs or debt settling programs? Let me know. I need help.

Try calling the credit card companies especially if u are 90 days late on the payments. Ask them if they will take 'payment in kind'. This means if u owe 2000 they may take 1200 cash. If they agree tell them to send u the paperwork which should state they will not report you to any of the credit bureaus. Then send them the agreed upon amount via certified mail. If they wont do that ask them to lower your interest rate. Most will do that.

2008-10-20 20:09:55 by adams

Is it possible to settle your credit card debt yourself? You most definitely can! There are just a few simple skills that you'll need, and a ...

I was thinking of using these people to help consolidate my credit card debt and settle my accounts for less. I have looked them up on the BBB and they have an A rating and there are no complaints. I am still not sure even though all of their paper work looks ok too. I just don't want to get scammed or have any issues...I am a worrier about everything so I want to make sure it is ok. Does anyone have any experience with them or know how much they actually help?

I never settled.. but ......................


and. HOPEFULLY no one will flag me for this.. BUT..

I used this company to help get rid of the stuff on my CREDIT REPORT..

www.sourceonecreditrepair.com

1-888-440-2040 x305
BILL


JUST THROWING THAT OPTION OUT THERE!!!!!!

2009-04-21 11:14:51 by ♠ Jenn ♠

Price: $24.95

I have credit card debt with 2 companies. I want to try to settle the debt for about 2/3rds of the total with each one. Anyone know hwow I can do this without using a credit professional?

Hi mawmaw mary!

Looking at the other answers so far, I see some good info mixed with some incomplete info and also some inaccurate info.... So here's a quick step by step guide for you to accomplish your goal:

Settling for 2/3rds is a reasonable goal.

First let's clear up a few things, then I have three "keys" for you to follow...

Overall, "doing yourself", consumers average settlements of about 75%. Professionals average less than 50%, and usually charge about 15% in fees, putting the total cost to use a professional at about 65% or less on average.

Creditors do give professionals "special treatment" because they deal with each other every day. Large professional negotiators are the bread and butter for most collector these days. Also, when a professional representing many clients comes to the table with $ Millions of dollars, this creates serious leverage and creditors are willing to settle for substantially less than any individual would ever be able to achieve on their own.

Still, I've helped many folks who have a knack for negotiating, documenting and following up (the three critical skills you'll need to do this) to get settlements as low as 45-60%. Here's the keys to accomplish this yourself:


KEY # 1) Your accounts must be delinquent.

Creditors will not settle for anything less than the full balance until your accounts are seriously past due, usually 180 days + after "charging off". This is because when creditors "charge off" an account (an accounting entry), they are taking a tax benefit on the account by writing it off as a loss. This devalues the account, and it is no longer worth the full balance owed. In fact, the normal course of business is to sell the "bad debt" to a third party debt collector.

FACT: In 2006, "bad debt" was sold to collectors for an average of $0.034 cents on the dollar. That's 3.4%! Keep this in mind. This is exactly WHY debt settlement works so well, because it's a better deal to the creditor or collector than any other option, such as a lawsuit, collections or bankruptcy.


KEY # 2) Documentation BEATS Conversation, every time.

DO NOT make any payments by phone. Collectors will almost always ask for a check by phone. Say this:

"Unfortunately I’m unable to make a payment at this time; and am hoping to bring resolution to this matter as soon as possible. I understand you want me to make a payment right now, but that just isn’t possible. I will have $_________ (state an amount that's roughly 35-50% of your balance, not a percentage) soon and want to settle one of my two accounts, whoever will give me the best deal. Can you please send me an offer in writing?'

Track everything (documentation)... who you speak to, their name, phone number and extension, date and time. Keep everything organized in a folder, easily accessible.

HINT: You can do this initially or in response to a settlement offer that's too high... Write a "Hardship Letter". Hand write or type up a letter describing your situation, your inability to pay and include information such as, divorce, medical issues, loss of job, disability or reduced income. Any information regarding your personal hardship will help your negotiation, so don't hold back. Send this letter along with a request to settle the account for $_______ (again, a random amount roughly equal to 35-50% of your current balance).

NOTE: Certain creditors such as CitiBank, Chase if you live in FL, NY or OH and Target will not settle for such small amounts. You should accept 60% to 75% in these situation and consider it good. All three are more likely to pursue legal action as well.


KEY # 3) Use certified mail with return receipt.

Once you get an acceptable settlement offer in writing, send a check, but first... Write your account number for the account you are settling on the check and in the memo write "FOR PAYMENT IN FULL". Send the check along with a COPY of the settlement offer certified mail with return receipt.

BULLSEYE LETTER? In over seven years full time in this debt and credit business, I've never heard of a bullseye letter. I'm an optimist, but it's unrealistic to think you can settle your debt for about half of what you owe and at the same time have the creditor send you a letter to have the account removed from your credit report. However, once the account is paid to a zero balance, then you can do the normal process of credit repair and quite possibly have the account removed through disputing it and requesting verification.

FYI: "credit counselors" do not settle debt. They usually are able to reduce interest rates but collect the full balance through a debt management plan where you pay them one single payment each month while they turn around and pay your creditors for you (hopefully), in full.

** If you ever consider professional debt settlement, be sure to READ THIS WARNING FIRST: http://ezinearticles.com/?Debt-Settlemen t-WARNING!&id=1275007

2008-09-07 09:07:04 by mawmaw mary

I was on the verge of Bankruptcy a couple years ago and my parents generously offered to allow me to move back home for a year to get my credit squared away.

In that year, I managed to settle my debt with almost all my creditors for about 1/2 to 2/3rds of the orginal debt. For example, my debt with one credit card was about $1,800 and I settled for $1,000 and paid it off.

A year or so later, I'm starting to receive letters from different creditors stating that I owed now $800.00 to them as they've bought the balance of my debt from the last collection agency.

Is this legal? Why should I bother settling if they can turn right around and make the pay the full balance anyway? I live in the State of Oklahoma if that matters.

Do NOT pay them anything and tell them that you've settled the original debt with the original company. If they insist that you owe the money tell them that you have the documentation to show that the debt was settled, and if they report you to the credit companies, that you'll file a wrongful debt suit against them. Play hardball and you'll win, but under no circumstances pay them a penny. If you do, it's like an admission of the debt.

2006-09-21 08:58:46 by Heather S

I'm getting ready to start negotiating with my creditors for the first time (yes I know it will hurt my credit). Will it be any easier to settle for less given the current economic situation? Thanks :)

Yes it is. Slightly.
It's a case of supply and demand.

You may not know it, but debts such as yours are packaged and sold in batches to debt collectors. Because the economy is down, there is a lot more credit card debt out there. So supply is up.

After several recent years in which lots of new debt collectors entered the market, bidding prices up, the market for debt buying has dropped recently.

Supply up. Demand down. That means the large-scale economic forces are tilted in your favor, because debt is cheaper, and therefore it's easier for you to settle for less.

So, yes, because credit card debt is cheaper to buy right now, collectors don't have to squeeze you as hard to make a profit, so the negotiation landscape slightly favors you more now.

BUT

Individual situations are different. Your debt may have been sold to a collection company that won't negotiate because they overpaid or their policies forbid it or you just run into a hardheaded collector.

Rather than worry about the national economy, learn about YOUR rights. See 11 tips for dealing with debt collectors: http://www.creditcards.com/credit-card-n ews/debt-collection-tips-5125.php?a_aid= 1079&a_bid=bcb7f7a1

2008-07-28 19:19:03 by RecurvDesign