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What percentage can I settle with credit card companies

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    #16
    Honestly, the only time I would consider negotiated lower payment is if you entered into the debt agreement with the intention of doing it. That's contracting in bad faith.

    Other than that, I don't feel any moral obligation to pay debts. (Well, I do, but I don't blame others if they don't). It is simply two actors negotiating with each other, with possible consequences for both sides if they don't reach an agreement. And everyone has the right to try to reach the agreement in their own best interests.

    If creditors don't want debtors to have the option of negotiating down or not paying at all, they need to stop charging interest on the possibility of it happening.

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      #17
      Just to clarify a bit, the debt was due to medical reasons where my only option was to place it on credit cards or possibly not be here. It was a tough choice to make and I knew I wouldn't be able to pay all the credit card debt I was charging, but when faced with such a situation, sometimes you have to do things that may not seem ethical from the outside.

      My two choices at the moment are to declare bankruptcy or try to negotiate a settlement. Due to still high medical costs for ongoing treatment and medicine, I need to settle with the best terms possible. I can probably pay 50% right now as I mentioned, but with the uncertainty of future medical costs it seems wise to settle for the lowest amount possible so I don't end up here again.

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        #18
        To be honest, that was an awful choice. If you knew you couldn't pay the bills, it'd be way better to owe the hospital than a CC company.

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          #19
          welp, here is your roadmap to settelling for a fraction of what you owe: have few assets, and be 4-5 months delinquent.

          Behind on Your Credit Card? Now You Can Get Bailed Out - Companies * US * News * Story - CNBC.com

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            #20
            There was an interesting article in the USATODAY yesterday on this very subject.

            It said that several of the big banks have given their phone operators the authority to cut deals on the spot for settlement. They were throwing up cases of 40% and 50% settlement.

            The stipulations were you have to already be a few months delinquent, but not as much as 6 months. At 6 months the banks are required to reduce the amount they carry on their books to zero - consider it uncollectable I guess. So accounts getting near that point I suppose they are adopting the attitude that something is better than nothing.

            All very interesting.

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              #21
              Why did you pay with a credit card instead of the hospital? Hospitals will often work out a payment plan without much interest.
              LivingAlmostLarge Blog

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                #22
                There was a quick piece on the news this morning about settling with CC companies. They said that companies are being more willing to settle in hopes of getting something instead of nothing. They also said that many companies are allowing the front line people to make offers, though I think I'd still want to talk to a supervisor to get the best deal.

                A couple of cons. If you settle for less than you owe, you may owe taxes on the forgiven debt. Also, a viewer wrote in and said that if you negotiate a settlement, you may have to pay in one lump sum, so that's something to keep in mind if you owe a large amount. It won't do you any good to get them to agree to reduce your debt from 30K to 10K, for example, if you don't have $10,000 lying around ready to send in. Then if you owe income tax on the 20K, you could need another $5,000 at tax time.
                Steve

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