My credit is good. I have 3 credit cards totalling about 33,000 worth of debt and they are all at very low interest rates. Recently I was gifted 11,000 and I would like to use this money to settle my debts with my creditors, or at least the big one of 19,000 with Chase. My question is this: Will they settle with me for an amount less than the 19k I owe? Should I contact a lawyer to help me with this endeavor? Any advice would be helpful. Thanks in advance.
you say that your credit is good - does this mean you are not late or behind on any of these cards? if not, why would the CC companies settle anything with you? You have a contract with them In order for them to consider a settlement, you would have to be many months behind on payments, charged off, etc. and your credit would not be good, then they might be inclined to accept a settlement if they though they could not get anything by suing you
That is what I was afraid of. My accounts are all current and my credit is good so why would they consider taking less. Looks like my options are to quit paying them and allow my credit to be damaged and then risk being sued - OR - Pay off the debt in full. Does this sound right to anyone? Or is there another option?
Usually people don't pay because they can't. Pay off debt highest rate first. As your debt level drops, you may get balance transfer offers at better rates, but otherwise just work it down. Look at how it got high in the first place, and adjust. You will reach low debt WITH good credit sooner by paying it off if you can than by trying to get out of it, and then have to clean up your act and wait for your credit to improve. Once your credit goes bad, you start paying for it in a lot of little ways: higher insurance, higher rates on all credit, missed oportunities, etc.
