My mother’s hoping to settle a credit card debt in the amount of $20,000. She has never missed a payment or has been late. She wondered how to settle without paying the full amount. Is this possible? If so, how would she go about doing this? How low could she possibly go without insulting the credit card company? You’re assistance would be greatly appreciated.

Regard,
Rj

By paying the debt in full will credit card companies give you a break, like a percent reduction in what you owe? Anything? Any advice?
Thanks,
Sherry

Although our debt is exorbitant, we have been making real progress towards paying off debt (over $15,000 in the last 6 months). We have never been late on any payments, and aside from a high-interest credit card that will soon be paid off, our interest rates are pretty manageable.

After reading this article, I am considering a new strategy for paying off debt. When I am ready to pay off the full balance on a card, I would like to hold payment for 2-3 weeks (just before the 30-day past due note would be made on my credit report). Then, I want to negotiate a full payoff at a reduced amount. I would like to do this in a way where a certain percentage of the interest charges are removed from the account retroactively instead of the debt being “forgiven” so that there are no tax consequences or necessary notations on my credit report aside from “Paid as Agreed”. Do you think this is the best strategy?

We have kept up all our payments and haven’t been 30 days late in 5 years. However, we are really struggling. Our parents are helping us since my husband became Underemployed 18 months ago. It is becoming increasingly difficult to make it each month. We have considered just defaulting, credit counseling and bankruptcy. Which one will look better in 7 years? HOw will each affect us immediately? If we default, how long before they will go away? What can they really do to us? Can we even file bankrupcy while we are current? Is the new bailout likely to help us any? We currently owe 38,000 in unsecured debt, 116,000 on two mortgages on our home which is valued around $120,000 and 30,000 on our two vehicles which are needed to contiue to work. Our income in 2006 was $72,000. In 2008 we expect about$30,000. HELP!!! Any advice is appreciated.