[rrbob]

I would like to settle my credit card debt, but my situation is different than most.
I have about 50,000 in credit card debt. I am current on all my payments.
I pay minimum, or slightly more that minimum payments.
I will be retiring in 6 to 12 months. After retirement, I will no longer be able to pay the credit cards. I could wait until I retire and declare bankrupsy, but I don't want to go that route. I do have some money in a 401(K) and I could use some of that to settle the credit cards. If I could settle for about 65%, things would work out OK for me. How do I go about doing this? The settlement companies I have looked into don't seem geared to my situation. I have read that if I am current on my payments, the card companies won't even talk to me about settlement. Do I stop paying, and for how long before I contact them? Any help would be appreciated. I am not overly worried about my credit rating; I just want to afford retirement. Thanks.

[seniorjudge]

Q: How do I go about doing this?

A: Ask the credit card companies while you are still in their good graces. Debt settlement companies are scams.

[aaron]

If you petition for Chapter 13 bankruptcy protection you will be subject to a repayment schedule which, assuming you complete it, will resolve your debts over a period of years. It's much like what you propose, except it provides certainty that all of your debts will be resolved and that you won't deplete funds you need for your retirement.

[rrbob]

Thanks for the replies.

Seniorjudge, you think the card companies will talk to me about settlement, even if I am current with my payments?

Aaron, I assume that in chapter 13, I still have to pay the full amount? So if I settle my $50,000 for 70%, and pay $35,000, isn’t that better than paying 35,000 over time, and still owing more? Plus my cash flow would be better without having the payments coming out of my retirement income?


Thanks for the help