Offering a settlement on a credit card - how did it go for you?
February 7, 2011 12:02 PM Subscribe
I'd like to call my credit card company and offer to settle my $10K account for $5K, but circumstances extenuate - how has this worked for those of you who have tried?
For the past four years I've been grinding away at a debt management program that will finally wrap up this summer - yay! When I started, there was one credit card account that declined to participate, and I've been trying to be aggressive in cutting that down to size; right now that one stands at around $10K at 11%.
However, I lost my job last week, and I won't be able to pay the minimum payment, much less the over-and-above I've been managing for lo these many months. Because of the job loss and the little bit of severance that came with it, along with vacation payoff, etc. I have a little extra cash. I also have a 401(k) disbursement, so that cash is available if I need it to do what I want to do: I want to offer a settlement to the outstanding card account, say, .50 on the dollar. I am not able to offer much more than that.
My debt management co. says that I have to be seriously delinquent before the credit card company will entertain the idea. The thing is, through all of this, I've never missed a payment, nor have I ever been late. Too bad, but I feel like now is the time to strike.
For those of you MeFites that have done this, how has it worked for you? Any advice on how to approach this from a debtor's point of view? Do I really need to stop paying for five months for this to happen? Many thanks for your consideration!