Negociating credit cards? Do they all lie?

Question

I am trying to negociate with credit cards, can not pay anymore. Consumer Couselilng will not work and we do not want to go bankrupt. I was talking to one today and she told me she would accept 50%, put me on hold and then told me no. We do have equity but we can not get it out because of the market and our credit. Should I stop talking to the creditors and only send letters. We can only afford to pay 50% to all creditors. Credit Cards 50,000.

Answer 1

Do not stop working with them and ignore them, only worse things will happen. Just keep dealing with them on the phone, keep repeating your offer to pay 50% and make sure they don't harass you. Eventually they will accept it rather than let it go to a charge off or bankruptcy.

You may have to let your credit get worse though if it isn't already that bad.. they base their decision on your credit report. (you are keeping track of that aren't you?) If it shows you are still making regular payments on other things and have income and assets they may not go for the discount because they know they can sue you for the full amount and get it out of your other assets.

Have you tried other credit counseling places? You should not have to pay for this service by the way.

Answer 2

I think it would be better if you go for a debt settlement plan also know as debt negotiation. It mainly involves negotiations with the creditors to reach a reduced payoff balance on debts and that cuts total debt of an individual, sometimes over 50%, with lower monthly payments. And more often this consolidators know your creditor and so can get a better deal from them.

Here is the source of a debt consolidation company http://ezconsolidation.com for your reference

Answer 3

Why do you think credit card companies lie?

You have it backwards.  You are the one who accepted goods and services after promising to pay later, and now does not want to pay.

Answer 4

Keep in contact with the credit card companies.  If Consumer Credit won't work with you, if may be you have too much debt.  Generally, they are very upfront with you and will tell you if your best option is Bankruptcy.  Do you have a 401 at work--you may be able to borrow from that.  It doesn't hurt to try the equity loan--try a credit union or finance company--not a bank.  Generally the credit union or finance company will work better for people with less than perfect credit.  Generally, a settlement is the last thing you want before bankruptcy.  It is reported as being settled on your credit report and you will take a hit on the unpaid amount from the settlement as far as taxes are concerned.  For example--you have a $8000 debt--you pay $4000.  This would leave $4000 not paid for.  Of the $4000 not paid, anything over $599 is reported to Internal Revenue.  The IRS considers this income and they will send you a 1099 for this.  If you decide to do the settlement and you have trouble negotiating with the collector, ask to speak to their supervisor--this will get you further.  Good Luck!!!   ***

Answer 5

The further your cards get behind, the more flexible your creditors will become.  They will negotiate & take less than 50% at some time.  The downside is your credit is going to take a pretty big hit.