Need debt settlement letter & your suggestions

[Bibliophile]

I owe about 14K on two credit cards; my guess is that one-third of that debt is late fees and interest.

That's the extent of my debt, so bankruptcy for such a relatively small amount wouldn't make sense to me. I have no assets, so I would like to try to settle with the two credit card companies myself (NOT by using a debt settlement company).

Can anyone post a debt settlement letter they used successfully, or suggest a website where I can access a good debt settlement letter I can use?

Further, your suggestions to help me achieve a successful settlement with these two creditors would be very helpful.

Many thanks....

[treehugger1]

Just keep searching the posts here, or google credit net (leave a space.) While there are many posts on this forum related to debt settlement, I know of very few members (can't think of any, actually) who have gone this route and settled all their debts. In my experience, you have very little levergae until you are approaching chargeoff (180 days,) and given the current economic situation perhaps the banks will even become more hardcore. $14K is not that much, and you are certainly correct in looking for alternatives. I'm not sure that the voice of experience you seek can be found on this site. There is lots of talk here about offers, but I'm not sure how many members ever went down the route of successful settlement, "successful" being the key word.

Waiting until 180 days chargeoff will be devastating on your credit report, but if you can get a settlement agreement, you might recover in 7-8 years. There is no way to know. What is your goal?

[Bibliophile]

What is your goal?

My goal is to get these two credit card accounts paid off without:

a. paying the entire 14K owed;
b. filing for bankruptcy.

I'm not ashamed/afraid/worried about filing for bankruptcy; I just think filing Chapter 7 over what I consider to be a fairly small amount isn't wise.

I did Google 'debt settlement letter', but most sites that come up are debt settlement companies and I don't trust anything they post.

[Bibliophile]

The two credit card accounts are from Chase and Discover. Chase has made a few attempts to contact me and my family; Discover is like a pit bull. Both companies have been calling family members, which embarrasses the hell out of me.

[StartingOver08]

Go to this site: www.creditinfocenter.com

They are a do it yourself type site - not a settlement company and have all kinds of forms/letters and pointers on getting it done.

[fltoo]

I would go the route you are suggesting also. Chase and Discover have definitely settled for people.

I think calling is better than a letter. Call frequently and tell them you are willing to take a settlement. Keep asking for a person higher up than whom you have on the line.

[BKINAZ]

ANSWER THEIR CALLS! (was I clear?

I have had minor successes..but now timing is dictating more serious talks.

--Early on (couple months behind)...Chase woud settle for 80%. / Compass..."NOT AT ALL"
-- 5 months in...Chase is at 65% ...Compass 80%. (compass is my second btw)

I'm hearing at 160-180 days...they will talk even more.

[treehugger1]

Figure out what you can pay. Suppose you have $10K in dwebt and have $1200, call them and offer 12%. If they accept, then don;t send any money until you have the agreement in writing.

[Bibliophile]

Thanks for the information.

[HHM]

Calling is ultimately better than writing, but you need to get the agreement in writing. However, let me warn you, even if you settle and have it in writing, we are starting to see CA's simply selling the deficiency to other CA's, and it can be a big hassle to get the second CA to stop collections.