How to Settle CC's with perfect payment history

[ficobuddy]

---

@ficobuddy wrote:

I have already had one company speak of this. They would negotiate down the back interest paid to help me in this situation avoiding settlement. It's probably the route I'm going to take (or attempt with each creditor). Hopefully that will take a chunk out of the debt, and I can go from there. 

My apologies to all that feel uncomfortable about toeing the line of advice and legal advice. I was just seeing what, if any, other optiosn were out there. Thank you!

---

Is there a name for this, so I don't stumble over my words trying to explain what it is I'm trying to achieve with these creditors? I would much rather be on the ball and get to the right people about this option. 

[Anonymous]

Legal advice aside, when it comes to making payments on the debt if that is what occurs, I suggest googling snowball debt payoff. 

[ficobuddy]

Thank you!

[Kidcat]

@Anonymous wrote:

Sorry that you are in this situation. I'm no legal expert, and I've never been in the situation you describe, but do have a few thoughts just off the top of my head:

1) I don't think banks are going to be eager to 'settle" as you describe.The amount of debt you describe is substantive. From what I have seen happen on the board to members, they may most likely sue or attempt to obtain judgments.

2) If the credit card companies sue, they will sue your wife, not you. Credit card companies had a legal agreement with your wife and the divorce settlement is not part of that legal agreement. I have seen on the board where people confuse divorce settlements and original legal agreements with the credit card company, and those two are distinct and different.

3) If you're legally obligated in the divorce settlement to pay the accounts and you don't pay them, you are in violation of the divorce settlement and your wife could take you to court for not following through as you legally agreed to do.

4) If you do get any of the aforementioned financial institutions to settle, it will be a huge black mark against your wife's credit if she is the one listed on those accounts. It will ruin her credit extensively. That may well prompt her to take you back into court, since you promised to pay these accounts.

Again, this is not legal advice in any way, but merely my first thoughts based on observation and consideration.

I'd think carefully before pursuing the path you are considering as it is not as cut and dried as you may believe. There are many potentially negative ramifications to you. I'd seriously consider hiring legal counsel if I were you prior to proceeding. The last thing you should be concerned about is getting to 780 FICO scores at this time - you have a lot of other serious issues that need to be dealt with.

---

---

@Anonymous wrote:

Sorry that you are in this situation. I'm no legal expert, and I've never been in the situation you describe, but do have a few thoughts just off the top of my head:

1) I don't think banks are going to be eager to 'settle" as you describe.The amount of debt you describe is substantive. From what I have seen happen on the board to members, they may most likely sue or attempt to obtain judgments.

2) If the credit card companies sue, they will sue your wife, not you. Credit card companies had a legal agreement with your wife and the divorce settlement is not part of that legal agreement. I have seen on the board where people confuse divorce settlements and original legal agreements with the credit card company, and those two are distinct and different.

3) If you're legally obligated in the divorce settlement to pay the accounts and you don't pay them, you are in violation of the divorce settlement and your wife could take you to court for not following through as you legally agreed to do.

4) If you do get any of the aforementioned financial institutions to settle, it will be a huge black mark against your wife's credit if she is the one listed on those accounts. It will ruin her credit extensively. That may well prompt her to take you back into court, since you promised to pay these accounts.

Again, this is not legal advice in any way, but merely my first thoughts based on observation and consideration.

I'd think carefully before pursuing the path you are considering as it is not as cut and dried as you may believe. There are many potentially negative ramifications to you. I'd seriously consider hiring legal counsel if I were you prior to proceeding. The last thing you should be concerned about is getting to 780 FICO scores at this time - you have a lot of other serious issues that need to be dealt with.

---

I was in this situation and I am an attorney.  I'm not giving legal advise, but you can be sure that if they sue your wife, you will be joined by any smart attorney, for breach of contract.  So even if a judgement goes against her, you will have to pay under a binding contract or face contempt, which can be much worse than being sued by a creditor.  

I don't know your income/cash flow situation.  But if you cut back, you might be able to pay these off within 2-3 years and not 10 years.  I think creditors will only negotiate once you are late, which will off course tank your score.

I would just buckle down, and make sure those accounts are closed so she can not run them up while you are paying them off.

[Anonymous]

I think the advice provided by several people above to consult a lawyer is the best thing you can do.

myfico members, even those who practice law as a profession, cannot advise you over the internet about the law, nor about your situation - and you need a legal opinion because there are many moving parts to your situation that could go a myriad of different ways.

[fullstackdev]

OP, if your plan is to pay the debt, why not look into a personal loan with a company like SOFI or a credit union to consolidate the debt? This could greatly reduce your total monthly payment and interest rate.

[Anonymous]

No one wants to settle on an account that is current. the debt relief programs and offering less than the full amoun direct contact… is after you've already screwed up your credit and not made payments for several months. You'll be stuck with a bunch of charge-offs that stay on your record and affect your credit much longer than a bankruptcy. 1 out of 15 posts of mine these days is me complaining that I should have done bankruptcy and not been stuck with charge-offs they are worse imo. Bankruptcy is not something you do yourself so when you decide to go that route you will be talking to a lawyer that can discuss your finances and if you should even do it or not. so my advice is to seek advice just warning you that the path of charge off is ugly. You have to go to A cash and carry mentality which is really hard to do overnight

[Chickenpotpie]

OP sorry to hear you're going through a personally painful time.  

Someone touched on this upstream;  you may be able to get a loan that will consolidate all the lines if you go through a credit union.  That way you can get one single interest rate, usually one thats very managagble, to pay all the cards. 

If you can under terms of the divorce decree, close them if you haven't already.  Thats good for you as there won't be any more run on them, and, as long as you pay the minimum keeps you in good standing on your credit reports (dosen't hurt you if you have them closed, just that they're paid on time)

In lieu of that, absolutely look at getting the rates reduced.  Trust me, they don't want to settle though I'm sure they would beacause it would be at least a guranteed amount they would get.  But be aware that settlements like that can sometimes hurt you down the road. 

[NRB525]

Yes, OP, can we be clear on one topic:

All these cards are closed, to prevent new charges, correct? Your ex has no access to these cards to make any new charges?

[ficobuddy]

Yes, all cards are closed.