I'm sorry about your situation and I do hope that I gets better. As far as Discover not settling, you ran up your card to $13k and you expect for them to settle for half of that? I get that you might have been in a tight spot at that moment, but let's be realistic, if every creditor agreed to that they would go bankrupt. Credit companies often offer a settlement after the account has been closed for a while and it has gone to collections and normally the settlement offer is for 60%-75% of the balance.
WOW, yes I get what your saying, Im embarassed that it has come to this I really am. You have NO idea my financial situation, I recently sold my house, moved to a more afordable one, gave birth to a baby girl and the father left us, not support form him. Turned in my lease vehicle and now have one vehicle, sold my motorcycle, sold hot tub, sold my horse and have other things for sale. Just trying to get this settled so I can improve my credit score. But thanks for pointing out the obvious! Oh...and I also but myself through school and recently paid off 100% of my student loans! I work full time and take all the OT I can. You are right, I messed up, but Im sure trying!
I moved your thread to this sub forum because your situation is better suited for this section. Good luck in resolving the issue.
Wow Michelle.... that’s a lot. Super proud of your resilience!
Ok, so Discover won’t settle. Next best thing is to take the 6K and catch up discover and Boa (not sure of boa balance). Hopefully this will lower your payments monthly so they are manageable.
Wow, that's a lot to deal with, stay strong. As mentioned previously put that $6k towards the debt and keep making payments. Also, tax season is coming in a few months, since you get to claim your baby I expect you would get something back.
So sorry that all this has happened to you Michelle. I would do as another poster mentioned, don't throw the whole $6,000 at the debt all at once. I would use the money to bring the accounts current and then use the remaining to pay your minimum until you are better off financially. A lot of people see debt as a bad thing, but sometimes it's a necessary evil. It doesn't sound like you're being hit with large fees and interest on your Discover card, is the same true for you BoA card? With a new baby, I can only imagine how much your expenses have increased over the last few months. So I would use some of that many as a safety net. I would also update your w-4 so that you can take home more of your money with each paycheck.
This is a difficult time for you, but you're handling this wonderfully and you should be proud. Don't worry about your credit scores. They're only a snapshot of a moment in time, so you'll be back to 790 with proper debt management soon enough. Good luck!
I think the issue is the newness of the account. You haven't demonstrated inability to pay yet, and still considered low risk offering to pay them so early. And of course they want as much as they can get since they used their money to pay off your other debt! That being said, they may be willing to waive interest charges longer for you and may even waive the late fees as a courtesy if you are going to get caught up and make regular payments. I'd likely try to negotiate with them, begin making regular payments, and keep the 6k as an emergency fund if that is the only lump sum you have.
Pay Discover the $6k that you recently obtained. Show them goodwill, make regular payments on the remainder. When your BT is up see if they will lower your standard interest rate. Discover does lower rates but you have to work to get there. I do not feel they should settle. If you were $30k in debt i'd say BK is an option, but if you the ability today to pay off nearly half of that BT then you should.
And perhaps you credit score will jump a bit when that utilization drops, opening the door for you to app for another BT offer with another credit card company. Also look into local credit unions. Maybe a personal loan for the other half if Discover won't lower your standard APR.
Michelle, I think you are rockin! You have a LOT going on and I am proud of you! Taking care of your child is what is most important (congratulations for her)!
If it were ME, I would speak to TAKE CHARGE AMERICA. They were awesome to me and they can help you work through this. Hang onto that $6,000. Speak to a counselor. if you owe $20,000....your monthly payments will be around $350 for 5 years. If you apply the 6k down, it drops significantly.
Or, there is bankruptcy....which would give you a fresh start and a new perspective. It's your decision. Do what is best for you and your child.
I would do BK7 and burn both banks. Bofa especially, they are ruthless and deserve the write-off.