Credit card bailout - Do it Yourself

First of all, let me make this disclaimer that myself or this site take no responsibility for anything that goes against you. You are advised to double check with your friends or even knowledgeable professional before taking any major decision.  You can also check our Business Reference area for expert help.

If you think you have a financial hardship like lost your job, major medical issue (unable to work) or any reason your income is affected.   You missed one or two payment – Some banks will start sending you settlement offer or better terms to pay-off your balance, if not you can call and ask for kind of deal which fits to your condition.  If you prefer something better then you are offered right now then you are advised to wait but you must remember by not paying minimum balance you are risking your credit score as well as there’s small possibility of bank getting judgment against you in court to recover their balance in legal ways.  But if you are OK with these risks and charging off your credit card balance is THE GOAL then read on…    As you know that going to court and getting judgment can be lengthy and expensive  - for example to recover your $12,500 – they might spend $1,500 to $2,500 to get court judgment with the hope of recovering some balances.   They can only recover with your bank’s checking or saving account or may be wage garnishment - With court judgment Banks cannot go after your home, automobile ( If you receive notice from court about Judgment against you from Credit Card company,  best to seek lawyer’s advice )
Now which option sound better for Banks?  
[a] Spend $1,500 to $2,500 get court judgment or
[b] Simply settle your balance at $5,000 ( on total balance of $12,500 )  - They might even give you payment plan
If you accept plan [b] for bank, at least they are assured to get $5,000 out of you but with plan [b] they might spend another $1,500 to $2,500 but very less possibility of getting full balance recovered.
I have heard and saw settlement as low as 25% to 30% so set your goal and keep asking
(I will try to get some sample settlement offer letter and other real time material and post here to help you further)

N Patel

 

 

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Credit card bailout - Reduce your credit card debt with these simple steps