5K CC balance with Cap1, what are my options?

[Anonymous]

ok, my current balance on my cap1 card is 5k, and im current on payments.

from what ive researched on this forum, cap1 doesnt really accept settlements. their MO appears to be: charge cards off first, then sue later.

im making about 40k a year, but with bills my budget is getting tighter and tighter. what are the chances cap1 will be willing to settle say after 4 or 5 missed payments? and if they do, what % could i negotiate down to?

[SouthJamaica]

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@Anonymous wrote:
ok, my current balance on my cap1 card is 5k, and im current on payments.

from what ive researched on this forum, cap1 doesnt really accept settlements. their MO appears to be: charge cards off first, then sue later.

im making about 40k a year, but with bills my budget is getting tighter and tighter. what are the chances cap1 will be willing to settle say after 4 or 5 missed payments? and if they do, what % could i negotiate down to?

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Don't settle; just keep paying. Any settlement will screw up your credit for years to come.

[Anonymous]

This strikes me as a well researched piece that may help you:

https://consumerrecoverynetwork.com/how-call-bank-negotiate-credit-card-yourself/

I'd take the author's advice and read through the Comments section to his article as well.

[Anonymous]

i should also add, i went through bk7 5 years ago. fico has recovered since then to high 600s.

[rbentley]

I would strongly encourage you not to do this.  You will be self-inflicting a lot of damage on your scores.  The lates will stay with you for years.  I have seen no indication that Cap1 will do a GW removal.  They wouldn't for me.  You are risking a lot hoping for a discount settlement which is dubious.

$5,000 may seem like in impossible burden but it is doable.  Consider a balance transfer to a card with a lower APR, apply for a new card with a promo 0% balance transfer option.  Take a part time job short term.  Sell some excess items online.  Donate plasma.  You can do this and will be glad you did, once it is over.  You will always regret default.

[krielly]

It's a bit concerning that you went through BK 5 years ago, yet find yourself with 5K in debt on a cc which you cannot afford to pay.

That being said, any missed payments (particularly after a BK discharge) are going to have a huge negative effect.

Do what you need to do to pay this debt off, and then take a look at your spending so you don't find yourself in this situation again.

Good luck!

[Anonymous]

My own advice is (1) continue to pay the card as agreed, first and foremost, above minimum if possible; (2) if you have a card with a lower APR than your Capital One card and enough available credit to BT (balance-transfer) the Cap One balance without pushing utilization on that card excessively high, do so; (3, should really be 2) review your credit-card spending and cut out all unneccessary items so that your balances don't continue to swell out month after month; (4) call Capital One and negotiate with them directly for a payment plan to reduce APR and/or monthly payment on your card (this may require your card to be closed, I don't know), following the link posted earlier.

Charge-off should be an absolute last resort because it will do serious damage to the progress you've been able to make since BK. I went through BK myself four years ago, so I have to remind myself of these things and keep careful watch on my spending to allow myself from getting into that mess again even though I now have much better income than I did back then.