Please respond - I really need help! Should I negotiate a lump sum? Hello. I am $13K in debt with Citi. I am not delinquent - all payments have been made on time. But I lost my job a year ago and have been trying to get hired again and have had no luck. My parents now don't have jobs either, so my financial situation has become pretty bad. I was thinking about letting my account go delinquent for the next three months, attempting to negotiate a full and final settlement with Citi, and then if that was rejected, attempting to negotiate a settlement with whatever collection agency they will sell my account to. But I'm afraid of going about this process. Will I get sued? I would appreciate advice. I wouldn't have resorted to this type of resolution if I had any way of paying back my debt or making future payments. This is the only viable option I have left.
Hey, you got to do what you got to do. Look up the information on "informal bankruptcy" which is basically what you describe. Don't take the victim mentality such that being sued is a bad thing. If you're prepared and have done your homework, being sued is playing right into your hand you can work that to your advantage. Good luck, and we're all here to help.
Let the account fall behind and ask for a paydown. Reduced payments at an APR of 0.00%-10% designed to pay the account off in 5 years. Less of a credit impact and you don't take the risk of getting sued. You might have to be 2 months behind before they will offer it.
