I would try negotiating with the creditors as to how the settlement will appear on your credit report and/or how long it would appear on your credit report. I hear this is very hard to do but I am trying to do it myself. Good luck with it.
I fell behind on my credit cards right out of college and settled all of my credit cards one by one…..and I am still suffering the after effects of that decision. I would bite the bullet and pay the full amount on the cards….i didn’t realize how adverse of an affect settling would have on my credit score.
Again I am trying the following tactic to deal with too much credit card debt. I filed a complaint with the Better Business Bureau regarding the banks that I have too much debt with and told them that the settlement I wanted was a debt settlement with no negative markings on my credit report. I am still in the negotiating stage and we will see what happens. I will not settle until there is some compromise on the credit reporting.
Finding this blog so helpful and hoping some of you have some words of wisdom for our situation.
We (hubby and I) have a mountain of debt, life happened, anyway we are falling behind. We are in the process of getting a home line of equity and can pay all the credit cards off with this.
Here’s the question, the credit cards have started calling since we are a month behind on payments. They have mentioned settling for 80%, I’ve heard the longer you wait the lower the percentage forgiven gets. This would free up some money on the line of credit and make the monthly payment lower. When I mentioned this to the loan consultant she advised strongly against settling as it really messes up your credit score.
What do you guys think? Settle for less than owed, or pay back the whole amount and struggle for a while longer.
You already have the equity loan so the 10,000 is in your pocket now.
Call your lien holder and get your payoff on the SUV. It is going to be less than the 10,000 you owe on it. It might be 1000 or 1500 less because of the interest. Pay it off with the 10,000 and then sell it outright to a dealer or private party and get a new car. I would suggest you look into a small SUV 4 door just for the protection and comfort or your wife and child. You can get one of those for 18-20 thousand, and for the 8 or 9 thousand you have in your pocket (after selling your old SUV) you would only be making payments on 10 or 11 thousand of it.
You would have a new car, smaller, less expensive and better gas mileage. Lets face it in today’s world house payments and car payments are just a fact of life, minimize them as much as you can, but unfortunately they will always be with us, well for most of us anyway.