Credit card companies: Let's make a deal!

We have been responsible credit card users since the early seventies. Three children later we still had no problems managing them.The problems started in the last few years when the gas prices hit almost $5.00 per gallon, and I could no longer get to work on the money we had budgeted. We had to bail out the banks and then they thanked us by raising the rates in excess of 25%. Credit card became a way of buying groceries and gas. Now with even my great job and salary, I can't afford the payments.

how much will they settle for or do you offer them ???

I see both sides. Being in debt over a combination of a lack of frugality, medical issues with my wife, and being too leveraged to make a quick dent, I'm always tempted by this idea...however, not having the lump sum to pay it, it's not worth it. Here is a good counter-article to this one...http://business.theatlantic.com/2009/06/dont_settle.php
I enjoy Dory's posts regularly. This is just another view.

In the end, we all have to credit our educational system. We have so many smart people at work finding ways to get all our money...and they succeeded.

I was told that when credit card companies sell their debt to collectors they only get about 10 cents to the dollar. I'm thinking about calling them to see if would negotiate something like 50 cents on the dollar. I hope it works because I dont have a lump sum to pay at once.

Hm... LaDawn... Thanks for judging everyone with a broad brush... :/ Yes, I agree that I used credit cards to pay for things.. I know the exact mistake that happened that eventually set me over the edge... I THOUGHT I could handle it... and I could have if I hadn't made that ONE mistake... But being a college student there are some things you just need... like Textbooks...

I ended up settling my debt with the companies (just finished off paying the last one in April, so it was before this new deal) and the only thing I negotiated was not what I owed for the purchases but all the Fees and Intrest that accrued when I was going through the settlements and couldn't pay... I knocked a good 1/2 off of all of my credit cards (which were the interest and fees they piled up on me while trying to pay them in good faith)... that doesn't make me a bad person... And I learned from the experience and will have a better handle and understanding on what I can and cannot do...

DEAR LADAWN M
ZIP-IT WERE SICK OF PEOPLE LIKE YOU AND YOUR SHAME ON YOU COMMENTS.
SO SHAME ON YOU TOO.

It sounds like a fast track to debt settlement...

LaDawn M sounds like you have a job and enough money to pay your bills... for now! can't wait to see what happens when you don't! boo ya!

LaDawn, I'm in complete agreement with you - even though I'm in over my head in credit card debt. I'm by no means a shopoholic, but sometimes the only way I can buy groceries and supplies for my family is by using a credit card. There's no way I could have paid it off in a month, so it has added up to nearly $11k in debt. My husband and I have decent paying jobs, but two children in daycare take the most of our income. High credit card bills are the reason I can't stay home with them - we need two incomes. As we look back on it all, yes, there were probably several ways we could have cut back and things we didn't really need at the time. Our lesson has been learned. We're slowly paying back all debt, but can't really afford to pay more than the minimums at this point. But there is no way we would ever - EVER - call our credit companies and ask for what is basically a handout. We got ourselves into this mess, and we will get ourselves out. The HONEST way. It's called personal responsibility.

My sister, was offered this kind of debt settlement.
2 of her banks slashed her debt by 1/2 to 2/3 of her debt.
She's paid off 1 credit card, she's on her last payment for the 2nd and the
3rd bank has also offered her a deal.

credit card debt is my biggest problem i can make the payment on time can not get help with lowering interest rate so i can pay off the debt ive call the credit card companies and they wont help if you are paying on time i will never use a credit card again when i get them paid off

It still goes on your credit report as a settled account not paid in full. And you will receive a 1099 form to fill out during the tax season. The portion that is not paid is consider earned income.

shirleeann1946, keep checking your Credit card's websites for balance transfer offers...they are still out there. In many cases, they charge like 3%, but it may be worth it to add 1 payment to get 1 year of interest off the books. Keep shopping. Sometimes a better deal is there.

Shame on all of you!!!! You bought the stuff on credit, you need to pay for it!!!! NO WONDER our nation is in such a bad way with all the common, ordinary people failing to live up to their obligations. What ever happened to honesty and integrity? Having a hard time financially? TIGHTEN YOUR BELTS, STOP BUYING STUFF YOU DON'T NEED, pay whatever you can on your bills, and keep paying on them until your debt is paid off. Use a little self-discipline, and stop looking to someone else to bail you out!

One thing about this settlement though, you'll have to record these as income which is going to be taxed. Still a good deal.

On one hand, I can see how its one small thing that can push someone over the edge. (Medical expenses, pay cut, divorce/etc., being a student)

On the other, I am sick of being slapped around and hit with added fees/hiked rates to cover "discharged" debt because I "play by the rules". (Meaning: I pay off my balance every month and we have a significant cash reserve b/c we still live like we're broke students)

I sincerely hope that they're taking some things into consideration when doing this - and that the idiot who bought everything but everything status under the sun on credit and is now laid off, for ONCE, gets slapped, and not the responsible consumers.

hey LaDawn... shut it and move on. bad things happen to good people.

Why doesn't LaDawn have the right to express her opinion just like everyone else without being attacked and told to shut up?

Many people use credit cards to help them make it from pay day to pay day. And even worse, many don't have a pay day right now. The best thing to do is to tell the spokesperson exactly what your situation is right now. People who cannot afford groceries cannot chunk up a large sum. But give a call and see what is out there. Why not?

LaDawn, everyone has a different situation why credit cards were used. Emergency, student loans, etc. With the economy, it is hard on everyone. Let those without sin be the first to condem.