Let me start off by introducing myself. I’m from Georgia. Married and mom to 2 kids. I have 2 CC debts totaling just under $18,000.
- American Express @ 11.24% $10,500
- BofA LOC @ 19.99% $ 7423
I’m not behind on any of my payments, but I’m exploring the option of debt settlement. How is it done? What are the right questions to negotiate a settlement? etc…
I’m expecting to have $6500 by April 1st or so. Some advice would help. Thank you in advance.
I am confused… you can make your payments without an issue but you still want to get your debt erased.?
First off, If you are not having an issue making your payments then you need to start by creating a budget so you know where all your money is going. Then attack one of your cards at a time to eliminate them all togehter, this will keep your credit in good standings.
If you are making your payments on time then religously every six month call the CC company and ask for a rate reduction. Tell them you are considering several balance transfer deals you have in front of you but want to see what they can do for you. Every reduction you get will help you pay off more faster, reducing your interest load.
I have never had experience with a company that helps with debt settlement, but I would imagine third party involement is going to get your cards cancelled.
Is it worth that? I dont think it is. Not especially when you can put together a simple but powerful stradegy to just eliminate it by yourself.
But those are my 2 thoguhts for the day.
You cannot do a debt settlement unless you are way behind on your payments and understand that it will negatively affect your credit score. You should berate these cc companies about lowering your interest rate. If the person on the phone does not agree, ask for a supervisor and if needed, ask for their supervisor.
If, come April, you have the $6,500, your Bank of UnAmerica bill should be down below 7k. Call them and tell them you want a lower rate or you are closing the account and paying it off. Once they lower it, send them the $6,500 and get it gone quick.
That’s my suggestion. Good Luck to you.