I've got two on my desk done this year. Wells Fargo at 35% of the balance. GE Money Bank sold to a collection attorney that settled for 40%. That's a cash settlement.
Once a company decides to write you off, the going rate for sale of your debt to debt collectors is a quarter to a third of the balance. The older it is the less it is worth. Some old stuff sells for pennies on the dollar. A collection company buys it from a credit card company. They try to collect for a while and get what they can. Then they turn around and sell it to another collection company who tries for a while.
Shoot them a low ball figure of 20%, 25%, or 33% conditioned on them also reporting to all three credit bureaus for you, your spouse, and any other name on the account that your account, both principal and interest, is fully, completely, and satisfactorily paid off due to a mutually acceptable lump sum settlement and the account is in good standing. A check will be sent to them once you have an approved settlement agreement in writing. All names on the account should be included. Sometimes they have a spouse on your account without your knowledge. Suggest that is all you can borrow to pay them off(not that you actually have it on hand). If it isn't good enough, you may have to file Chap 7 bankruptcy and use any available cash to make your house payments. Mention any other hardships such as medical problems and layoffs. This would have to be in writing with something in writing back from them that they accept the offer or else they come back with a counter offer. Mention also that your offer is better than what they can do by selling your account on the open market.
Do not give them a dime over the phone either as a down payment or an expression of good faith. You will end up losing it. Pay nothing without an ironclad "written" agreement by both parties. You may discuss it over the phone but it has to be reduced to writing before any money changes hands. Since they often forget to do it, you will probably have to send to all three credit bureaus a photocopy of your written and signed agreement along with a copy of your cashier's check that you sent. Run all three of your credit reports before and after just to make sure where you are at. The company on your card may not be the present owner. Once a year you can get free credit reports from all three agencies at annualcreditreport.com. Ignore the requests to pay for debt scores and regular reporting. Don't use freecreditreport.com as it is not really free. You should never have to enter a credit card number to get your free reports.
I have tried work outs with multiple credit card companies adding another condition that all your other creditors must accept your lump sum settlement offers before you are obligated to pay any one. Usually some will bite on a deal but there is always one or more creditors that don't so the people end up in bankruptcy anyway. With one company you might make it work. I've seen people scrimp and save thousands to make one credit card settlement just to learn that they still can't make it so they end up losing their settlement when they file bankruptcy.
You need some professional help to take a realistic look at your present and future financial situation. If you can't quit using your credit cards and then pay off your credit cards in four years then you are spinning your wheels. If you can't quit using them then you will just run your balances up again digging the hole deeper.
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