Need settlement advise and experience for Capital One and Chase credit cards.

**maat55** · 04-24-2009, 08:15 PM

If you are able to pay them, why not pay them? You borrowed the money didn't you?

In any case, they will not likely settle with you unless you are in default.

IMO, you should pay them if you are able, if not, you will have to stop paying them and save up for the settlements later.

**rusty2832** · 04-24-2009, 11:25 PM

YOU HAVE 2 CARDS THAT HAVE 0% THROUGH EARLY 2010--KEEP ON paying your monthly payment and pay more if you are able to, as after 2010 they revert back to regular rate whatever it is for those cards and you would have wasted your effort by paying it early at 0%.

Chase $15,700.00 (0% until January 2010)
Capital One Business $11,600.00 (12.46%)
Capital One Business $6,800.00 (0% until February 2010)
Total debt $34,100.00

I currently have $12,000 from my tax return that I'm prepared to put towards eliminating my debt.

I haven't missed any payments, but I want to negotiate settlements on all of them (without the help of a 3rd party company), with the intention of paying off all the debt (or as much as I can) with my $12,000.

Your credit is not screwed. Put aside from your tax refund 2-3 house payments and apply the rest to partly savings and partly debt repayment. You cannot negotiate a settlement on your debts unless you go into default. You have not lost your house yet ye in one sense by expecting a future foreclosure, for reasons not stated, you have essentially given up and believe foreclosure is imminent.

I am not concerned with hurting my credit score as I will likely be loosing my home to a foreclosure in the next 6 months, so I figure my credit will be screwed either way.

But I'm scared if I stop paying my bills they will jack up my interest rate, and then what if they don't offer me a good settlement?

I'm thinking about trying to settle on my 12.46% Capital One card first, and seeing what happens. But if I do this, do you think they will raise my interest rate on my other Capital One card?

I agree with the other poster here that you voluntarily took on this debt. Granted the creditors are making obscene profits with their high fees, many which are unnecessary--worse than oil company profits--, they do have a right to make a profit. You are obligated to pay this debt until you can no longer meet the payments and go into default. If you are meeting your minimum payments on your above debts shown, and can pay your other bills, why do you need to settle with capital One for? By policy a creditor can raise all your other cards to default level if you default on another creditor. Why take that risk? I have a card with 22.24% interest and I owe $1092. on it yet I would not ask them to lower my rate if I can meet the payment--I took that debt on free and clear, making bad decisions. I owe it to them. Here, you took on this debt. You can call them and ask to see if they can lower your rate but don't be surprised if they deny your requests--just be nice and polite when you call them and if the first person says no, nicely ask to speak to a supervisor.

I'm looking for advise on how to do this, or other people's experience doing this with Chase or Capital One.

I would recommend you read the used book called How To Get Out of Debt, Stay Out of Debt and Live Prosperously by Jerrold Mundis. It is very useful book. I am so glad that my unsecured debt is 1/2 of what your debtload is. I am making progress slowly. Remember your situation is not hopeless. Rather than apply all your tax refund to your debt, put it in savings if you are scared your house will go into foreclosure. There are options out. Do not give up. Read through the various postings on the different forum topics here-gleam from them what words of wisdom you can. Go to getrichslowly.com forum for extra tips there. There is also a book called Debt Cures by Kevin Trudeau which is somewhat interesting. There are other sites, the Ramsey site also. Whatever you do, don't give up on yourself. Have faith. All you own them is money, not your life. If all you can do now is to make Minimum Payment and can meet your bills, that's fine. It took you more than a day to create debt and it will take more than a day to pay it off. You are a good person, just a little mixed up. Go to a movie, do something fun. You don't owe your life to your creditors. The
Mundis book had more impact on me than any other book has.

Thank you very much![/QUOTE]

**frugal saver** · 04-25-2009, 10:14 AM

I can't offer any advice, other than to say the Mundi book is wonderful, and deserves to be re-read once a year.

But I did have a card with Chase, and they don't seem to nice to deal with. I had a card with them with a $0 balance, and they cancelled it "for cause." When I talked to them, they said that I wasn't earning them enough money, and would not allow it to go on my credit that I cancelled it myself. They were fairly nasty to deal with, considering that I'd had a perfect account with them up till that point.

Good luck to you.

**neatdesign** · 04-26-2009, 10:29 AM

But I'm scared if I stop paying my bills they will jack up my interest rate, and then what if they don't offer me a good settlement?

I'm thinking about trying to settle on my 12.46% Capital One card first, and seeing what happens. But if I do this, do you think they will raise my interest rate on my other Capital One card?

If you miss a payment, then yes, they will most likely increase your rate. Particularly on the 0% APR accounts -- you miss a payment, that rate will go up automatically. If you continue to skip payments, then you risk universal default kicking in, and then you're potentially screwed on all three accounts.

You have 0% on two accounts for at least 7 months. You have enough money to pay off the card with the highest APR now. Why don't you pay off the $12k Capital One card now, and keep socking away at the other two accounts to bring down their balances as much as possible before their 0% rates expire? This will require you to pay at least the minimums on time so that you don't lose the 0% prematurely.

~ Jenney

**money blogger** · 04-27-2009, 09:07 AM

I agree with maat55 on this one.

**swanson719** · 04-27-2009, 09:25 AM

If you're getting foreclosed on and are willing to toast your credit anyway, you'd be better off from a purely financial - not moral, or credit - standpoint to allow your CC's to hit universal default. Let all three of them go to collections, then you can negotiate with the collections company to accept between 50 and 60 cents on the dollar. You're talking 180 days of non-payments, with interest accruing at 23% per year on $34,000, pumping it up into the $38,000 range minimum, then you settle on 50%, you're talking $19,000. If you did this, and put your $12,000 and what would be your monthly payments into an interest bearing account for 6 months, you'll see no more than 3.5% interest if you can get an account at Redneck Bank, then go and pay this off, you might be able to swing it. Might.

But this is all completely immoral, and will toast your credit into the 400's with a foreclosure. It's not bankruptcy, but it's still going to take you 7 years to recover. Good luck.

**wnlbutterfly** · 04-27-2009, 04:52 PM

If he puts that $12k into savings, won't they seize that with foreclosure? Just wondering.

**neatdesign** · 04-27-2009, 06:36 PM

Originally posted by swanson719 View Post

You're talking 180 days of non-payments, with interest accruing at 23% per year on $34,000...

I don't know about Chase, but the delinquency rate on most Capital One accounts is usually 29.99%. So, even worse.

~ Jenney

**b4freedom** · 05-07-2009, 07:05 PM

Originally posted by metanoia08 View Post

I am not concerned with hurting my credit score as I will likely be loosing my home to a foreclosure in the next 6 months, so I figure my credit will be screwed either way.

Thank you very much!

Obvious question here: Why not use the $12,000 towards trying to save your house? Why are you going to foreclose?

You�ve got your priorities mixed up. The law puts a priority on house debt over that of non-secured credit card debt. Meaning, if you ever go bankrupt (which if you lose your house is likely) you�ll still have to pay for the house (or house debt) but a lot of the credit card debt will be whipped out or at least renegotiated.

Ignore all the moral idiots on here.

This is what you do: If you seriously are going to default on your house and go into foreclosure then stop paying all of your unsecured debts except for student loans or other debts that are absolutely never forgivable. Turn off all your unnecessary services (TV, Home Phone Line, Etc.). You don�t want a home phone number where creditors can call you 24-7 with nasty mean messages threatening you if you don�t give them money. Save as much money as you can. Hoard cash. When the sheriff kicks you out of your house you will now join the ranks of the �Homeless�. You will want an apartment lined up to move into right away (be careful, some banks are now walking away from houses at the last minute and then the municipality comes after you for back taxes � it�s a new trap banks are dumping on people). Tomorrow, start selling assets to get more cash. Yard sale, ebay, craigs list, etc. Ever watch an eviction show? You need to prepare for that day. You don�t want to be one of those idiot families where the sheriff kicks them out and a week later a bank-hired company is dumping your $1500 tv into a dumpster with all of your clothing, furniture, and personal items. After a year or two, the creditors will give up on you and the IRS will have a big tax bill equal to 1/3 or any forgiven debt. This is where you�ll really need all of that cash you hoarded.

Need settlement advise and experience for Capital One and Chase credit cards.