I have several debts that have been charged off, or that will be soon. I am not able to pay them at this point, but the companies have been paid many times the value of the loans over the years, due to high interest and $50 to $60 per month for overlimit and late fees. One was from Discover, which is now in the hands of First Select. I have also received a letter from a local attorney who handles such cases for various credit card companies. I don't know if they really intend to sue, and what would happen if they did. I know that collecting judgements can be extremely difficult, but I also know they look bad on your credit report. Mine is terrible, anyway, but I want to start trying to refurbish it. My question is what should I do, now. First Select is offering to settle for about 2/3 of the debt, but that is still much more than the actual credit line. I am wondering if I should go to Discover and offer to settle when I am able for a fraction of the original credit line, and whether they are likely to accept that, and what wording I should use, or what I should request, so that my credit rating won't have a negative mark on it relating to this account in the future. I will probably have to do a similar thing with other accounts, although they have not, yet, been chargeoffed.
