If someone could give me some input on this... I am currently working with a debt negotiating agency. I have several cards , each with 8K balances. Two of the cards have already been sent to attorneys and we are getting correspondence form them. My negotiator, who previously has said that the longer they go the better the settlement, has said he has negotiated a 50% settlement, and that this is really the best you could get from an acct handled by an attorney. He also said it is desirable for them to settle at the end of the year. Also, we have received their letter stating it to the acct is settled in full, no mention of charge off. Are we being pushed too fast, or does it seem like the negotiator is doing a good job. The cards are Household, if this makes a difference. Thanks
I'm sure you'll get other replies to your post. But my first thought is why pay them if they are going to show as a paid settlement on your CR. Make them agree to, in writing, that they will remove from your CR for payment or report as closed and paid, no lates or derog info.
This will leave a black mark on your report as bad as not paying it. Never ever settle with out deleation and get it in writing.
"Settled in Full" is derogatory. You don't want that. It is almost as bad as not having paid the debt at all.
I hate to be a downer on Christmas Eve but, you may have no choice but to settle. If this guy has opened negoiations with lawyers, all he's done has told them you have money. If they think you have 50% of the balance, look for a lawsuit coming your way soon if the settlement talks fall through. Also, any settlement that results in a $600 or more difference in what you owe vs what you settled for is suppose to generate a 1099C and it is taxable income to you. Now, some CCC's will send them out and some don't so who knows but, you are still supposed to report it to the IRS whether you get one or not. I sugggest you get your negoiater on the phone and make him spell out exactly what he has told the other side about your finances, jobs, home, etc. Years ago, when I was a banker and someone called trying to settle for cents on the dollar that's what I did. I'd pump 'em for information and if I felt I could recover half or better, I quit negoiating and just called the banks lawyer.
I hope that you are not paying much for these negotiating services because 50% you could get by yourself. As the charge-off dates get closer, the cc will offer to settle. I received slews of 50%, one at 35% and one at 25% with no special effort on my part.
