Advice on what to do with delinquent credit card $8000

**bjl584** · 03-09-2018, 09:08 AM

If it's in the hands of a collections agency, then absolutely try to negotiate a settlement. They bought that debt for 10 cents on the dollar. But first, find out who is holding the debt. And, get everything every step of the way in writing and keep records of all interactions.

**disneysteve** · 03-09-2018, 10:17 AM

As stated, collection agencies will often accept a settlement offer. I've heard that somewhere in the 25-50% range should be your target.

You need to be prepared to pay the agreed upon amount all at once. It isn't a payment plan. It's a lump sum settlement.
You need to get IN WRITING that the payment will settle the debt.
You need to pay with a cashier's check or money order that doesn't give the collector any possible way to access your bank account. You do NOT want to do an electronic payment or transfer or authorize them to withdraw the money.

Will it affect your credit? Yes, but your credit is already trashed from not paying your bills (hence your 540 score currently). The best way to move forward is to get it taken care of and then move on from there.

**Gailete** · 03-10-2018, 01:45 PM

Originally posted by Dylan123 View Post

I'm looking for advice on how to proceed with a delinquent credit card that I stopped paying about 6 months ago. i owe them $8000.
I had fallen on some hard times last year, helping my mom financially as she lost her job and needed to move into a new place.
I currently have about 4 other credit cards which I am maintaining and paying off. It's just the one credit card that got away from me.
I don't want to file for bankruptcy.
Should I accept some sort of settlement? I heard that it can negatively impact one's credit score. Right now my credit is at about 540 and I would like to rebuild it.

I recently got a letter from Capital Management Services saying "This company has been engaged by Barclays Bank Delaware to resolve your delinquent debt.

So I'm guessing that it hasn't been "sold" to a collection agency? The are just using this company to collect the debt?

I would like to get out of this debt and rebuild my credit but I'm not sure how to proceed.
Should I contact the original credit card company or the Capital Management Services? Should I ask for a settlement or try to pay the full amount?

Thanks for any and all replies.

D

I suspect that Barclays Bank is a 'fancy' way of saying credit agency.

I realize that this is very personal but what were you doing helping your mom financially whe you were hurting yourself financially? I don't know how your mom is doing now, but by helping her it sounds like you have made your own situation worse. Is she aware of what happened to your finances? Prior to helping her were you keeping up with all your bills including that credit card. I figure if you stopped paying on it 6 months ago, you must have already been in trouble with trying to keep up with it or was it used to finance your mom's needs.

As the others have said you need to be able to pay off the credit agency in full if they agree to decrease what you owe, but if you don't have the money for that, DON"T borrow it as it will just be one more bill to be paying off. You need to arrange for a repayment schedule, even if only $25-50/month. I'm not sure what they can do if you don't make a particular amount each month as a payment. I know we had a lab bill, that I was trying to negotiate a decrease in the amount and a monthly payment that we could afford, wouldn't even wait a couple days not like I hadn't been paying for months- they had us turned into a credit agency. I pay my bills and even though I know that they paid minimal to pick up the bill, I made sure they got their money's worth. I made payments like clock work, exactly how I would have done to the lab, and when some extra money came in, i paid it in full! At the time I could only afford $25/month. and that is what I paid.

You need to be up front with them and tell them how much you can pay and that you will pay it each month until paid off. Although if you get a chance, pay extra on it to get rid of it quicker.

Put bankruptcy out of your head as a go to solution. You legally contracted to pay these bills, now you have to pay them.

**FindingFreedom** · 03-17-2018, 03:48 AM

Hi Dylan-
-Ask the debt collection agency for a debt validation letter once they contact you. It will help you see exactly where you stand as well as any rights that you have surrounding the collection of the debt.
-Check your state's laws regarding the collection of credit card debt as well. There are statutes of limitation on the collection of debt but they vary by state.
-Review the fair debt collections act. Debt collectors can be really nasty so it's best for you to know what they can and cannot do if they do cross the line.
-Do NOT give them permission to automatically withdraw the payments from your account. You do not want them to have free access to your money.

As far as your options, you can probably negotiate a payment plan, pay it in one lump sum or negotiate what you owe to a lower amount.

I'm guessing that lump sum is an unlikely candidate which leaves negotiating the debt down or negotiating a payment plan. Whichever one you do, make sure to get the agreement IN WRITING before you make a single payment. Debt collectors are not known for being the most trustworthy so you want to make sure you have a leg to stand on if they come back and try to change what they agreed to.

Also remember that if you do negotiate paying a lower total than you actually owe, you may be liable to pay taxes on the break that you were given.

I agree with a previous poster that you shouldn't worry about your credit score right now. Focus on lowering your expenses and getting your debts paid off. Once you are debt free then you can work on getting that credit score back up.

**msomnipotent** · 03-17-2018, 06:45 AM

I had a response posted on the 9th and don't know what happened to it.

If you google Capital Management Services, you will see that they definitely are a collection agency. Now that the debt is with them, you contact them instead of Barclays. The fastest way for you to raise your credit score is to get everything on your report showing as paid. Negiotiate to get a settlement and ask them how long it takes for them to report it is as paid. Then watch your credit report to make sure they do it. Sometimes it slips through the cracks.

Advice on what to do with delinquent credit card $8000