topic Re: settle or ignore in Rebuilding Your Credit

settle or ignore

SeanAndrews — Mon, 14 Jul 2008 17:14:21 GMT

I am going through some rough times with a recent breakup and therefore loss of disposable income. As such I had been unable to maintain paying two credit cards so far. They are both in collections now, one from Chase at 10,000 and another with GE Money (Paypal) $4500. I have ignored calls from the credit card companies since I really didnt have any good answer for them. Now the collection agency is starting on me. I hear all sorts of advice on what to do but it's sometimes conflicting.

Right now I could probably pay about $75 on the one and $40 on the other. Should I call them back and make the offer, and also, I know that they settle for cents on the dollar but if I make an offer of a monthly payment, whats to stop them from making it last 10+ years so they get most of it back anyway? I hear that you should never talk to them on the phone, so do you just send letters back and forth?

As far as my assets go, I do have a house but it's only been two years so far at this one, and I doubt there is much equity in it at this point. Other than that, I have three cars but only two suitable to drive, and they arent worth much (1993 and 1994).

Message Edited by SeanAndrews on 07-14-2008 10:14 AM

Re: settle or ignore

Anonymous — Mon, 14 Jul 2008 17:18:27 GMT

I would try sending them a GW letter. List out your circumstances and your attempt at repayment.

Re: settle or ignore

Anonymous — Mon, 14 Jul 2008 21:28:50 GMT

First you must know your SOL!

http://www.bankrate.com/brm/news/cc/20040116b2.asp?caret=8

CC are called open accounts

What is the DOFD.....this is found on your CR.......you can get the drop date from them and count backward to get SOL. Or when was your last payment DOLA?

If you are within SOL the creditor can file a lawsuit against you.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=8713

Re: settle or ignore

SeanAndrews — Mon, 14 Jul 2008 23:00:14 GMT

Oh I am definitely within the SOL. I don't even know how an amount that high would get *out* of the SOL. So do you think they will definitely sue even if I make an offer as above? I just dont know what they consider "acceptable" on a 10 grand account. I defnitely cant pay a lump sum, it will have to be monthly.