Credit Cards

[momofseven]

I have about 36,000 in cc debt on three different cards, I will have about 22,000 to put onto these cc, should I call the cc companies and try to settle these accounts so I can get them to zero more quickly.  If I do this will it affect my score negatively?    Or should I keep paying on them and save the 22,000?

[momofseven]

I should also add that my fico score are 760 average.  Thanks.

[PayingTheBills]

these CCs are closed?

[momofseven]

no, they are active accounts.... and have twice as much cc limits on them actually.

[txjohn]

You haven't provided some necessary info:

1.  Are these accounts open or closed?  Are they in default?  Late?  Collections?

2.  Is the $22k your total savings?  Would you be "broke" after paying it?

3.  What is your income?  How much are you currently paying monthly on the debt?

However, in answer to your questions about FICO and Credit.  Yes, a settlement for less than owed will result in damage to your credit, unless you were able to manage to get a written committment that they were going to report as Paid as agreed, which is not likely.

[PayingTheBills]

could you list each account with the balance and limit?

IMO, you have enough to pay every card to under 29%, which would net you a nice points gain.  But looking at your scores, you don't need that gain.  I'd pay off the highest interest card while making at least 5X the min on the other cards.

[txjohn]

If these are active accounts and you have $22k cash, and you have reasonable income to service the loan, then you really need to pay the debts as agreed.

Settlement is generally reserved for scenarios where there is not enough money, income and resources to pay off the debt in full, thus the creditor accepts less than owed in order to minimize losses which will occur due to the inability of borrower to pay. 

Message Edited by txjohn on 04-10-2009 07:42 AM

[momofseven]

HI

Thanks for the help....

answers to your questions..... 

Are these accounts open or closed?  Are they in default?  Late?  Collections?

2.  Is the $22k your total savings?  Would you be "broke" after paying it?

3.  What is your income?  How much are you currently paying monthly on the debt?

1.  these accounts are open. and active, they are not in default or late or in collections.

2.  yes, that is my savings.....  I pay anywhere from 1100 to 2000 on cc debt a month, but paychecks are smaller right now due to limited overtime available , currently takehome is around 1600 twice a month, but used to be around 2800 a check..

3.  last year my husband grossed 106000. 

[momofseven]

Hi

Is that 29% of the credit limit?

  Thanks for your help.

[momofseven]

I just want to get on the other side of debt.... I want these to be zero and not get them this high ever again... and put a ton in savings.

my current thought is to take the 22000 pay it to the debt, making it around 14000, pay 1500.00 for the next 10 months and it should be paid off....