What can I add? I'll add experience with Citi, BOFA/MBNA, and Cap1. These folks were not willing to discuss a reduced settlement offer until I got very close to the 180 default. While BOA entertained 35% at 180 days, Cap1 offered no such thing. About 30 days before chargeoff, BOA and Citi were more then willing to write 0% - 2% financing agreements over 5 years. But, as BB pointed out, this was not enough to protect me from the future wrath of other creditors and CA's. I had a few glitches surface after I made 3-9 monthly payments on these plans, and in hindsight I should have them told them to take-a-hike. I got sued in small claims by local creditors and I got sued in small claims by creditors that have local offices. I survived many months of wage garnishment and continued to do my best to meet the other settlement agreements. In the end I will charge off 9 of 22 accounts (these are substantial.) Since I'm still not in a position to file BK, I should have not paid anyone, and told them to sue me and get in line for garnishment. I could have used the money to pay down student loans or helped ailing family members.
To the original poster, it sounds as if you must have substantial income given your overall CC debt. Why not tell them to take a hike and stop paying them anything? If you are BK 13 material, it won't matter whether you wait 2 months or 10 years, The outcome will be the same; potentially five years of paying disposable income to the trustee. Or, you can suffer the possibility fo 25% wage garnishment. Heck, if your unsecured payments already exceed 25% of your disposable income and you have no assets, then the potential of 25% wage garnishment might look good.
I'm speaking from the podium of a 50+ old debtor who has (and continues to build) substantial pension/retirement fuinds (currently protected in BK.) At my age, I can play the legal garnishment game for years. Upon retirement, under current laws, I could wait out another 6-12 months and declare a BK7. My unsecured debt payments were about 45% of my takehome. I rather play the garnishment game and hide the other 20% in coffee cans in my yard for a few years.
If you are young and want credit in the near future, then you might consider BK as soon as possible. The sooner you grind everything to a halt, the sooner you might recover your credit ability. You should ask yourself, "Where do I want to be, and what can I afford 5 years from now?"
Debt settlement will not improve your credit rating, unless you can somehow manage to also have the creditors (on a payment plan) show "paid as agreed." By the time most creditors are willing to "work" with you, your credit will be trashed for several years. If you declare BK, then at least you have a timeline for everything dropping from your credit report, if that's important to you.
Just opinions.
To the original poster, it sounds as if you must have substantial income given your overall CC debt. Why not tell them to take a hike and stop paying them anything? If you are BK 13 material, it won't matter whether you wait 2 months or 10 years, The outcome will be the same; potentially five years of paying disposable income to the trustee. Or, you can suffer the possibility fo 25% wage garnishment. Heck, if your unsecured payments already exceed 25% of your disposable income and you have no assets, then the potential of 25% wage garnishment might look good.
I'm speaking from the podium of a 50+ old debtor who has (and continues to build) substantial pension/retirement fuinds (currently protected in BK.) At my age, I can play the legal garnishment game for years. Upon retirement, under current laws, I could wait out another 6-12 months and declare a BK7. My unsecured debt payments were about 45% of my takehome. I rather play the garnishment game and hide the other 20% in coffee cans in my yard for a few years.
If you are young and want credit in the near future, then you might consider BK as soon as possible. The sooner you grind everything to a halt, the sooner you might recover your credit ability. You should ask yourself, "Where do I want to be, and what can I afford 5 years from now?"
Debt settlement will not improve your credit rating, unless you can somehow manage to also have the creditors (on a payment plan) show "paid as agreed." By the time most creditors are willing to "work" with you, your credit will be trashed for several years. If you declare BK, then at least you have a timeline for everything dropping from your credit report, if that's important to you.
Just opinions.
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