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Trista
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Subject: Help in lowering debt amount
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Fri Aug 06, 2010 3:49 am
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Hi all,
I am in hardship programs (for almost all of my credit cards). I had a major loss of income, thus couldn't pay my cards for a few months. They all offered the programs to me to help me get back on track again. However, when I called to ask if I can lower my payments before I was late they refused.
Now, my husband and I might be coming into a large sum of money and would be able to pay off all of these credit cards. What I want to know is If we agree to pay them in full will they agree to lower the debt amounts? And if they do will my credit score be hurt?
Most of these cards are closed in order to be in these programs.
Thanks for any advice |
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Aaron
Joined: 08 Feb 2010
Aaron's page
Posts: 2675
48566 Magic Points
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Subject: lowering payment
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Fri Aug 06, 2010 7:31 am
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Hi Trista,
| Quote: |
| What I want to know is If we agree to pay them in full will they agree to lower the debt amounts? And if they do will my credit score be hurt? |
Yes, some creditors and collection agencies may agree to settle if you pay them in full. However, you should also keep in mind that creditors, and colelction agencies generally do not settle for debt amount less than $10,000.
Yes, settling the outstanding debt amounts will hurt your credits core, as you will ave to miss payments before settling the debts.
Thanks,
Aaron
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Fishman
Joined: 09 Jul 2010
Fishman's page
Posts: 11
Location: Boca Raton, Florida 33487
223 Magic Points
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Subject: Lowering Debt
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Wed Aug 25, 2010 8:49 pm
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Hello Trista,
There are creditors who do agree to reduce the balances. However, there are consequences to debt settlement. One is the adverse affect it will have on your credit score. The other consequence is that you may have to report the unpaid portion of your debt on the income taxes at the end of the year.
One other item to think about when considering all of your options is to really investigate organizations who may be calling and offering up services to help you with settling your debt.
Hope this information is helpful.
Feel free to contact with any additional questions or concerns.
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Ed Fishman
Non-Profit Budget Counseling |
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andybell
Joined: 11 Aug 2009
andybell's page
Posts: 19
Location: Laguna Hills
249 Magic Points
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Subject: Re: Help in lowering debt amount
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Sat Oct 30, 2010 11:17 am
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To lower your debt amount follow these steps:
1) Have your accounts automatically paid each month
2) Pay your credit card bills immediately
3) Keep your credit profile clean
4) Debt Management Help
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Newport Beach Real Eatate helps save your Laguna Beach Home or Coronal Del Mar Houses
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Stacey
Joined: 03 Nov 2010
Stacey's page
Posts: 12
221 Magic Points
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Subject: Attn Trista
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Wed Nov 03, 2010 7:23 pm
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some places settle, not always though. If you have an amt already arranged to pay, just pay that, and don't let them come after another dime. Get everything in writing. Some will say they don't but if they agree to a plan and expect it to work, let them know Texas is a monitor state, so your call can be recorded for your security and you can ask for the agreement in writing. Then make the pmts.
don't tell them you are coming into money, becuase then their whole prspective changes on helping you.
Stacey |
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Aaron
Joined: 08 Feb 2010
Aaron's page
Posts: 2675
48566 Magic Points
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Fri Nov 12, 2010 12:29 pm
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| Quote: |
| don't tell them you are coming into money, becuase then their whole prspective changes on helping you. |
Absolutely! I think this is the key to a successful negotiation. If they get a hint of your coming into money then they'd almost certainly try to settle it on the higher end.
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