Debt settlement

What steps do you take first

For those of you who have been successful with debt settlement.

Did you negotiate this with your credit card companies right off the bat or did you start first with asking for a decrease in the balance or interest rate. When negotiating debt settlement – how do you present your case? I don’t know what to say to these people.

Discover directed me to credit counseling and they want a specific amount that I can pay each month. I don’t see how this is going to help any with the high APR I have.


Loans For Bad Credit?

Hi, I’m new to the group! Due to a divorce and recent years of bad decisions, my credit is not good. If I could get a loan (around $6000) that would pay off everything and bring all my payments current, plus I would be paying less per month.

However, I am having a hard time getting a loan due to the bad credit. I have held a full-time job for almost 8 years and could have payments automatically drafted from my bank account. Does anyone know where I could do this? Or is there a better way? I’m open to suggestions. Thanks!

Consider installment loans, not payday. Go to – there you can get an installment loan even with bad credit score.

Good luck!

Paying off debt

thinking about paying off debt

Hopefully this will be a quick and easy question.

I have aprox. $1700 in debt with a hospital, which was sent into collections a couple years ago. I have tried setting up payment arrangements, but they sent me my bill and said it was due about 2 days after I received the bill. I sent in my bill and lowand behold, my payment was accepted, and I awaited for another bill. Nothing came. About a month later I got a letter from Central Financial Control saying I defaulted on my agreement with them to pay. So I called them up and they gave me the run-around and said they will no longer accept payments because apparently they never got my first payment. Good thing I didn’t send them a huge amount of money. This is the ONLY thing on my credit report. It’s 2 bills equaling up to about $1700.

Now, I talked to a credit counseling guy (free) and said that I could probably set up something where I could settle everything for $1000, if i talked to the right person. This gets to my first question. If I were to pay off the $1000 how should I go about doing it so they don’t rip-me off again? This is A LOT of money to get lost. Should they also report to the credit agency that it’s paid? and would that add a positive note on my report?

thanks in advance.

Before going much further, find out where your last payment went. Did you send a regular check and if so was it cashed? Did you send a money order, cashier’s check,etc? Same question. If it was never cashed, put a stop payment on it before send this company any more money.

Then, once you get a payoff agreement in writing, send the money (after making a xerox copy) either through FedEx or USPS certified so that some human and the company must sign for it. FedEX and UPS can give that info the day it is delivered, USPS will snail mail you back the green post card. Once you have the name of the person signing for the money, you can call the company back and get a verbal agreement they have it.

Then, since you have copies of the check, the payoff agreement and confirmation of their receiving the check, they can not legally do any more.

But again, I would first be fighting to know where the first payment went.

Good Luck.

Debt settlement

Alliance One

This is my first post. Anybody ever heard of Alliance One before?

This is debt settlement company. If you’re interested in our mostly collective opinion of these companies do a search in this group’s archives for the last month. We’ve discussed it in depth and I’m sure that’s why no one has jumped up to answer it again. Check out the archives and then ask any questions…we’ll try to help where we can.

OK, this may be a silly question but is there another way to search through previous messages for “Alliance” other than just typing it in hte search box? I just keep getting the last few messages about alliance one. Thanks.

I have been getting alot of calls from Alliance One for my credit card. They have settled for $13,000 but I can’t afford it. I tried calling my bank for a loan but since my credit is pretty much screwed, I have been denied. Any suggestions?

Credit cards

Save money or Pay off Credit Cards?

I’m wondering if any of you have any articles or books you can refer me to. I am 29 with 2 kids, hubby and house. We’ve accumulated some credit card debt, and a HELOC as well. But we also save money for retirement, to Roth IRAs, 401K and 457 and 529 plans for the future. My question is should I stop our monthly deposits to these “savings” accounts momentarily and use that money to pay off the debt?

See if you can increase/rollover deposits to 401K and IRA an take what’s left from 457 and 529 and try to pay down debt. We temporarily stopped our savings and 529’s for the kiddos until we get out of debt. The more money we have to go against the debt the quicker it gets paid off and the more we will be able to save in the future.

Auto loan | Paying off debt

We decided what to do

We are going to pay off the large loan and the auto loan.

We will then call the creditors and negotiate with them on lowering the interest rate and removing fees.

Anyone have any success stories to share that will help with our calls?

Credit cards | Debt settlement

Credit Card Settlement

I have been paying minimum payments on 2 closed credit card accounts. In the next couple of months, I’ll be getting a lump sum of cash, to then pay off some debt.

I’m wondering if anyone knows if I can call the CC company and offer them a set amount to settle the account. Do they do that? If they would, does that get reflected on my credit report? How low can I offer? I used to be months behind on payments, but have since caught up, and pay my minimum payments on time. Thanks!

Yes you can call and ask for a settlement but from what I understand you may not be successful if you are not behind. I am not 100% sure but you should always call and ask.

It does reflect on your credit and it does reflect negatively. I confirmed with one of my creditors that the difference between what the balance was and what you paid will reflect in a 1099-C which means that you will have to pay taxes on it.

There has been discussion on how low you can offer. Some have said to start as low as 20% and possibly expect to pay up to 35-40% but I am not sure and I don’t have any personal experiences with it. At least yet. That’s what I am working on now. Settling my debt.

I used to be months behind on payments, but have since caught up, and pay my minimum payments on time. Thanks!

First there is no such thing as “on time payments” on a closed account. Once an account is closed the balance is due in full immediately.

I’m wondering if anyone knows if I can call the CC company and offer them a set amount to settle the account.

Yes you can and that is an excellent idea. As for as them accepting a settlement that will depend on if they think they can get the full balance from you. By paying them each month you have put yourself in a position of being one that they can get the full balance out of. I know you were trying to do the right thing but the CC companies NEVER try and do the same so you really have to learn to play harder ball than them.

If they would, does that get reflected on my credit report?

Again depends on the CC company and the terms of your settlement. I would suggest a pay for delete settlement.

How low can I offer?

Whatever you want! That is what is great about “settlements”. You start the ball rolling and let them come back and keepgoing until you both agree. Just make sure you get it in writing! I suggest you start at 10% of the balance owed.

Debt settlement

Need advice on a settlement offer…

Remember this? Back in Nov & Dec we were being called daily from Zwicker & Ass. re: a Chase acct that seemingly could not be settled via our debt settlement program. Original acct from May, 2002 was $4350. Now they state $8490 is owed. I had settled 6 other accounts (paid off $14k) via the ECT settlement program, this is the last one, I had $1900 accumulated towards this when ECT refunded my money stating they could not work any longer on THIS Chase acct, so they sent me a check for the $1900 and told me I’d be better off handling it alone 🙁

This was *my* debt and my husband was aware but let me handle it, he finally took over negotiations as he is more patient and does not get riled up. He offered to send them $3500 and they (different reps would call simultaneously) kept stating they could not accept such a small amount but would check into it and get back to us. They did not. Jerry called them and left at least 3-4 messages asking them to call us. THEY DID NOT!?

Finally, last week, I rcvd a letter from them stating they were reviewing “whether the cost of litigation would exceed the likely recovery”, etc. …blah, blah, blah.

I have prepared a letter as suggested on this forum, but I am still confused as to the amount we should offer.

I have been advised here to: “So offer 25 cents on the dollar and work up from there. DO NOT go above 50 cents on the dollar.” ” and I have also read to start offering at 10%”…

And I am still confused as to what amount I base this percentage on, the $4350 or the $8490? So how much should I offer?

And should I use the USPS for this letter, with delivery confirmation? Or certified so I have an actual signature?

I understand that I should send the payment via UPS, Fedex or DHL.

Thanks so much…

I would offer $1500 and send it by fax…. go to a local Kinko’s or something and send it. This shows you mean business. Make sure to put a date of acceptance by such as:

In the spirit of good faith I am offering to settle this long disputed debt for the amount of $1500 and am prepared to pay in full on or before February 28, 2017.

Since time is of the essence please notify me of your acceptance no later than February 21, 2017 by fax at ###-###-####

Please understand that this good faith offer is not an admission of debt but a way to settle this matter in full.

Also, watch this video:

Debt settlement

I am going to try and settle some of our debts

Things are turning around finally and we are going to call WaMu, Barclaycards, Compass and Discover and see what kind of settlement we can work out. My bonus is finally on the horizon and we are ready to see if they want to work out a settlement.

Anyone have any thoughts they want to share about the companies or your own experiences in settling with them?

I’m new joining the discussion but wanted to put in my experiences. We have dealt with Capital One and found them to be reasonable, most of the time. If you get a customer service person that won’t work with you ask to speak to their Supervisor or better yet the Dept. Head.

Our experience with Discover wasn’t as successful. They are a bit more rigid and unwilling to work with the customer or at least with us anyway.

I don’t know anything about the other two companies. I wish you good luck.

Also, here is what we experienced with MBNA. We had someone going around stealing mail out of mailboxes in our neighborhood. They stole our mail and in it of course was our MBNA bill. We contacted the customer service department right away – she did not say a word after I gave her my account she switched me over to the collections department. The rep there informed me that we were past due on our payment. I explained what had happen and they sent us a new bill with a $600.00 late fee!

I talked to a friend and she referred me to a web-site – The dollar I wrote the gentlemen a letter – he referred us to the credit card section of his web – site. We decided to fire my MBNA! We were offered 3 credit cards at 0% for one year. we had to switch every year but it worked!

We now get offers from MBNA because they want us back – I just shred them! Hope this helps.

We had 2 accounts with Discover ($10,000.00 total) and got a reduced payment and reduced interest plan for 12 months on both. We also had 2 accounts with MBNA ($28,000.00 total) and were not able to make 6 consecutive payments so they called to say that they wanted some sort of solution or it would get ugly. They then offered a payment plan for 60 months or an offer to settle at 20% of the total. I countered at 15% and they accepted as long as it was closed by the end of January. I was able to settle with Wells Fargo for about 40% and Chase at about 30%. Hope that helps!

PS I did it all on my own and can only offer the advise of don’t get frustrated, keep a cool head, talk as one human in a situation to another human in a situation.

Well, I am starting my calling tonight. MBNA was up to bat first and they started out with 60% of the debt and ended at 35%. I suggested 20% and the guy said he would talk to his supervisor and call me back. So we shall see.

I am calling Providian next and then Compass and Discover. I am hoping they are willing to settle as I would really like to make some progress.

One thing I did confirm was that they would send out a 1099-C for the remaining amount. For example: if you owe 10,000 and settle for 4,000 you will get a 1099-C for 6,000.

Debt settlement

Settlement letters

Really good info guys- you have really lit a fire under me. If I send a fax say from Staples but dont have a fax machine at home will that be ok? I too am getting ready to settle with more of my accts with my refund but they havent been sending the settlement letters. Capitol One here we go…………..

YES! just ask at Staples if they can “receive” faxes….

My suggestion to everyone on the subject of faxes…. GET ONE! They are really cheap and worth their weight in gold!

You can send a Fax Free at…but I don’t know if there is a limit or not.

BUT…I KNOW you can received free faxes–really free… there are limits from They will come right in your email in box. I’ve gotten them free for years now. But to send faxes using efax, you must pay a monthly fee of 12.95. At any rate…you can try it out for 30 days.