I recently received a letter from the current holder of one of my old credit card debts. The are offering to settle with me for 40% of the outstanding balance. I'm willing to bet that that much of the total amount consists of late fees and interest. If I would save money by doing so, I'm thinking that I could counter offer to settle by paying only that portion of the balance of the account that consists of the un-satisfied principle, if they will drop all late fees and interest charges that have accrued since the last time I made a payment. Has any one on this board done this? Did your creditor accept your offer? I'd rather do this now to repair my credit sooner rather than waiting for the full 7 years to pass.
RE: Counter-offer to a settlem You have passed the first thing in credit negotiations; they agreed to settle. Additional late fees and interest will consist your total balance. If I were you, I would "counter" how the account will be reported to the credit bureau. Request a "trade line" deletion upon settltement. Be aware, this settlement could cost you some additional taxes if the creditor files a 1099c claiming the remaining balance as "income".
