I posted yesterday (Debt - To Settle or Not) for advice on how to get these monkeys off my back. I have an MBNA account (24%) interest for about 18K. It is 120 days late. I have tried to negotiate with MBNA over the phone offering 50% and they countered with 70%. We are at a stalemate and I'm concerned they will charge it off now. What should I do? Should I agree to 70% with a Paid status? I have a charged-off AMEX for 10K. Three collection agencies have been involved trying to collect this debt. Coldata/Allied Interstate is now the CA. Only AMEX is reporting to the CRAs. Should I send a validation letter to AMEX and the CA? Finally, a Sprint bill for about $650 in collections. Not reported to CRAs. CA offering 50% with Paid Settlement status. If nor reported to CRAs, should I just ignore or pay it and be done with it? Thanks...
Personally, I would try to work with them. I had this happen to me with The Associates. Originially it was for a $500.00 cc. I got behind, so they started adding late fees and overlimit fees. Long story short this account went to First Select Collections. this 500.00 debt turned into a $1900 debt. I still couldn't pay it at the time. they wanted to settle for $900.00. At that time I just didn't have it. so, guess what it turned into a judgemnet. I finally settle with First Select but it took $17,000 to settle. Now I have this judgement for 7 years. I will be looking for a mortage hopefully a FHA mortagage and I know I would have to pay it off. Hinesight, There maybe times we can't get what we really want. I know you may want to settle with 50% but you may have to settle with 70%. You just don't want this to turn into a judgement. Take my advice.
