I got into problems because I closed a $25,000 limit card due to non-use. Since it was my longest running card and highest available balance, my credit score went into a tailspin. Within months all my other CCC had raised my good APR's to 29%+. When my mistake was made all my scores were 720+.
It is now almost three years later and my scores are 485, 491, and 570. I have had alot of late payments over the past few years with a few 90 day lates. I didn't go to debt consolidation as I felt comfortable handling it myself. I'm to the point that all my cards are payed off except for two, Sears and Chase.
I have $2000 on my "closed by creditor" Sears card that had a $3300 limit. I also have $10000 on my "closed by creditor" Chase card that had a $8800 limit. The chase is behind 3 months as they continue to raise my minimum payments to the point I can't keep up. I ask for a payment plan to get caught up, when that's finished they start cranking up the minimum's again every month until I'm in trouble again.
I have some cash on hand from the sale of my home I would like to pay the cards off. It's not enough to pay the full listed balance on each so I'm hoping they would settle, especially Chase, for a 50-60 percent lump sum of the balance as PIF. Neither are at a CA, but the Chase is in collection now. Is it possible to pull this off? The balances on closed cards are already hurting me so I can't see it making it worse.
My plan is to:
1. Call and discuss a partial lump sum payment as payment in full.
2. If they make an offer, write a PIF letter asking for a official letter stating the deal is excepted before payment is made by cashier's check.
How does this sound? What if they won't work with me on a lower lump sum payment? Any other advice?