How Do I Make A Settlement On A Debt?

[DebbieL]

Your wife spent the whole $4,000 right? She signed and agreed to pay it back?? Why do you think that it is your "right" to demand to pay only 1/2, and not a penny more?

I would pay off my debts. I am a grown up, and if I put something onto a card, I know I have to pay off said debt. It is called responsibility.

[Inkstain82]

Your wife spent the whole $4,000 right? She signed and agreed to pay it back?? Why do you think that it is your "right" to demand to pay only 1/2, and not a penny more?

I would pay off my debts. I am a grown up, and if I put something onto a card, I know I have to pay off said debt. It is called responsibility.

The system is built around the possibility of default and settlement. There are consequences built in, and there is nothing wrong with accepting them if he's willing to do so.

People should feel bad about settling debts the moment the companies start charging them interest on the possibility that they might default and settle.

[boosami]

Say you borrow $3k @ 29.9% and never pay any of it back for a year. If finance charges and late/missed payment fees accrue that entire time, your $3k borrowed has turned into nearly $4,500 owed. Throw an additional over-limit fee each month and now we're at almost $5k.

I wonder how much of OP's $4k is made up of fees and interest tacked on by the creditor? The creditor may not even be taking a loss by settling at 50%...

[DebbieL]

I understand that the original amount may have only been $3,000 in purchases, or some other amount. I still say that when you sign on the dotted line, you are agreeing to pay. She hasn't made payments in a year - of course they add interest. If you have a mortgage, can you just decide not to pay the interest - or not to pay for a year, and then settle the mortgage for 1/2 (and still get to keep the house)? If you don't agree with paying back your debts, then don't use a credit card. Yes, credit card companies charge high interest (this is why I pay mine in full every month - it costs me nothing), but that is what you must deal with if you are someone who wants to have things now and not pay for them until later (or not at all in this case).

[tradelines]

Absolutely. Somewhere in the fine print it says, once they obtain that information you are in for a ride.

A lesson for all.

[Jimmy4us]

I just finished dealing with NCO the put the pressure on me to settle. I finally decided to file for banckrupty. The next week I got called about the same debt from another company NCO sold it off cause they knew they could not get any money out of me. I am now dealing with a company called enhanced recover corp and they settled for 25%. I would say hold out for a better deal!!!

[PetMom]

Credit cards are truly a trap and becoming more so - sure a lot of people are charing un-neededs on these but lately in this economy a lot of folks are charging food and gas. Some may think better to go hungry and walk than have to deal with these fellas though.

Credit cards are what is considered an unsecured debt - houses tend to be a secured debt. When someone does not pay a credit card it is written off with all the additional penalities, late fees, very high interest, etc and it does end up being a lot more.

The collector just wants a payment. Settlements do get them a profit or they would not want offer one. It saves them work.

Great advice to get the settlement in writing with a signature and faxed if necessary. They can wait for the payment. And use a cashiers check or money order to mail them the settlement AFTER you have the written settlement agreement and you have read it.

Also have the acct. will be closed (they try keeping it open with a late settlement payment) in the document.

Remember you do not have to talk to these collectors and can do all dealings through fax/mail contact.

[Runaway Finances]

I agree with the one post that we are responsible for our debts. I don't believe in bankruptcy. I do believe in negotiating a lower rate and even 0% if I can get it. Since you have not paid anything on the card for a year, then I would negotiate a payment based on what the original balance was without interest or a lower interest. In your case it might be close to 50%.

Either way, I would NOT give my bank account. I WOULD get them to give you a written agreement and I would send a cashiers check and send it Certified Mail "Return Receipt". I would follow up and make them acknowledge receipt. I would also obtain from the bank a copy of the cancelled cashier's check for my records. If they wouldn't settle under those terms, then don't settle. Your credit is already affected and you can use your documentation that you tried to pay your debt when applying for a loan in the future. It probably won't help you much, but frankly if you can't pay your debts then I question whether you should get further loans in the future anyway.

[tabl333]

Your interest on your house doesn't increase if you miss a payment. It doesn't make the amount you owe 50% more in 1 year. It's rediculous how CC companies work. They stick it to you once they've lured you into their web.