I wonder will this plan work?

[Quagmire]

I just read the following this morning in Yahoo News. I wonder if this plan will work for me?

"Most people don't realize that if they are behind on their debt payments and are going through some trying times, their lenders will often consider negotiating a revised payment plan or possibly forgiving a portion of the debt. For lenders, negotiating is cheaper than either hiring a collection agency or risking that the individual might have their debts cleared in a bankruptcy proceeding.

If you need a reprieve, approach the lender and ask for more time to make payments. You can also present a revised payment structure. If you can develop a plan that works for you and makes sense for the lender, there is a good chance they will accept it. If and when a deal is struck to forgive a portion of your debt, be sure that the major credit bureaus are aware of it and that they make the appropriate notations on your credit report. Less debt and timely payments equal a higher credit score.

You can check to see if the appropriate notations have been made by accessing your credit report, which will document your borrowing and any material changes made to these reports. You are entitled to one free report every 12 months. For more information on getting your free report see the Federal Trade Commission Website."

Quagmire

[flyinbroke]

NO, they won't defer payments. Some will offer to settle but you will have to cough up that cash in six months or (usually) less. Or they will offer a lower interest rate but the payments are often higher than the minimums you have problems meeting now.

My troubles were (hopefully) temporary...we had a raise postponed indefinitely, rent went up, utilities and gas got higher, and so did their payments. I asked one OC to defer till September. They refused. They hired a collection lawyer to come after me. I am exercising my right to arbitrate and waiting for them to rack up the violations since this particular lawyer is a "baddie" on Bud Hibbs' site.

They will get nothing, and guess what? I got my raise.

[catleg]

Creditors like that only exist in fantasyland.

The reality is, first hiccup of trouble, your limit gets slashed and your rate jacked to 29.99%.

They've got their boot on your throat, and that's how they like it.

[Fallonedward]

Creditors like that only exist in fantasyland.

The reality is, first hiccup of trouble, your limit gets slashed and your rate jacked to 29.99%.

They've got their boot on your throat, and that's how they like it.

So very true

[Fresh]

I think Catleg said it best. Too much of what you read about this is nothing more than fantasyland and it needs to stop. I don't know one person who's had temporary troubles who has been able to manage anything near this. It's a joke and too many Americans truly believe it.

[epiphany]

I just read the following this morning in Yahoo News. I wonder if this plan will work for me?

"Most people don't realize that if they are behind on their debt payments and are going through some trying times, their lenders will often consider negotiating a revised payment plan or possibly forgiving a portion of the debt. For lenders, negotiating is cheaper than either hiring a collection agency or risking that the individual might have their debts cleared in a bankruptcy proceeding.

If you need a reprieve, approach the lender and ask for more time to make payments. You can also present a revised payment structure. If you can develop a plan that works for you and makes sense for the lender, there is a good chance they will accept it. If and when a deal is struck to forgive a portion of your debt, be sure that the major credit bureaus are aware of it and that they make the appropriate notations on your credit report. Less debt and timely payments equal a higher credit score.

You can check to see if the appropriate notations have been made by accessing your credit report, which will document your borrowing and any material changes made to these reports. You are entitled to one free report every 12 months. For more information on getting your free report see the Federal Trade Commission Website."

Quagmire

If you're late enough some/most creditors will settle with you for a lesser amount. However, you need to be really, really late and this will be noted on your credit report. You need to figure out whether or not that is important to you.

Screwed up is the system: most collectors won't bother negotiating with you until it is so late that your only alternative is to file bankruptcy.

In my own experience, there were creditors who I told I was going to file BK that clearly didn't believe me. They pursued expensive legal options that would lead them nowhere. They played odds that did not pay out.

Terrible thing this whole BK thing but this too shall pass.

Best of luck to you,

ep

[LoadedGuns]

I just read the following this morning in Yahoo News. I wonder if this plan will work for me?

"Most people don't realize that if they are behind on their debt payments and are going through some trying times, their lenders will often consider negotiating a revised payment plan or possibly forgiving a portion of the debt. For lenders, negotiating is cheaper than either hiring a collection agency or risking that the individual might have their debts cleared in a bankruptcy proceeding.

If you need a reprieve, approach the lender and ask for more time to make payments. You can also present a revised payment structure. If you can develop a plan that works for you and makes sense for the lender, there is a good chance they will accept it. If and when a deal is struck to forgive a portion of your debt, be sure that the major credit bureaus are aware of it and that they make the appropriate notations on your credit report. Less debt and timely payments equal a higher credit score.

You can check to see if the appropriate notations have been made by accessing your credit report, which will document your borrowing and any material changes made to these reports. You are entitled to one free report every 12 months. For more information on getting your free report see the Federal Trade Commission Website."

Quagmire

No, the plan won't work.

[jacko]

Why not just write off the debt as a learning experience and change your ways like living with in your means with cash only?

I just read the following this morning in Yahoo News. I wonder if this plan will work for me?

"Most people don't realize that if they are behind on their debt payments and are going through some trying times, their lenders will often consider negotiating a revised payment plan or possibly forgiving a portion of the debt. For lenders, negotiating is cheaper than either hiring a collection agency or risking that the individual might have their debts cleared in a bankruptcy proceeding.

If you need a reprieve, approach the lender and ask for more time to make payments. You can also present a revised payment structure. If you can develop a plan that works for you and makes sense for the lender, there is a good chance they will accept it. If and when a deal is struck to forgive a portion of your debt, be sure that the major credit bureaus are aware of it and that they make the appropriate notations on your credit report. Less debt and timely payments equal a higher credit score.

You can check to see if the appropriate notations have been made by accessing your credit report, which will document your borrowing and any material changes made to these reports. You are entitled to one free report every 12 months. For more information on getting your free report see the Federal Trade Commission Website."

Quagmire

[flyinbroke]

This was actually an excerpt from an article on how to raise your credit score! I saw it on Yahoo last night and was utterly disgusted. The misleading of the public needs to cease...creditors will not work with you as long as you are paying. Once you stop, they won't work with you until you are in charge-off land. GE Money's "bad cop" collector suggested I borrow from relatives or off another credit card (I replied that my largest available credit was with their line of credit and could I borrow off that.) Citi offered settlement 60 days in but I said that if I had that much cash around paying their minimum was not an issue.

Even once you are in chargeoff turf they won't work with you! BoA has yet to send me ANY settlement offers (a verbal by their hired CA does not count) and they should be charged off this month. GE is charged off on one account and did not make any settlement offers on either account...though they lowered a payment, I would not consider it because the interest was the same...the payment would not cover the interest.

In short, don't believe a word of this. It is not in their best interest to help you. If they do help before trouble strikes, how can they ratejack you to default levels? Use your credit score as leverage? Get collection jerks after you to scare you into paying?

[ryan]

I saw the article on Yahoo as well.

Its typical big media reporting about stuff they know nothing about. CC's would never do this as described because of fear EVERYONE would want a deal like this!...they would open a floodgate of barely late debtors who would all expect these great 'fantasy' deals.

In the real world, which we all live in, you must be way behind , preferably on bigger amounts, to get offered settlements. I am 8+ months delinquent with a BofA card. They turned it over to a big CA in new york. They just offered me a settlement for 45% of the debt. Oh, and they will let me pay it in payments too......only 3 payments of $3,500 each. I said, "Sure, let me just put it on my credit card!"...LOL

[catleg]

Business reporting has become little more than regurgitating press releases from the corporate PR world.

[anime-chicka]

Creditors will ignore when you ask for help. It's only after you've missed a few payments that they'll get interested in helping you. I tried that, but most didn't care, since I hadn't missed a payment.

Boy once I did though, they were more than willing to help. By then it was too late and my decision to file had been made. I guess they only take us seriously when we're already past the point of no return.

[rck3]

I talked to mine (one of them) today and they have a 12 month hardship program. They close the account and drop your payment to 1% which amounts to about 1/2 the payment min prior. I am current on my cards and trying to be proactive. They appriciated it and were very helpful. They have said that if I can't make that work than I should look at BK. cutting my payments in half for 12 months would maybe let me break even each month but after 12 months I am not sure I'd be in a much better situation so I still think BK is the way to go.

[rck3]

They also said that program is standard for most cards (not that they will offer it) and they are not legally allowed to do anything lower.

[flyinbroke]

They also said that program is standard for most cards (not that they will offer it) and they are not legally allowed to do anything lower.

That smacks of bull**** to me, because if they were not "legally" allowed to go lower on anything, settlements would not happen.