Overdue Credit Card Debt - When Should I Take a Settlement Deal

[digirati]

My question involves collection proceedings in the State of: CA

Hi all, I've been unemployed for 6 months and counting now. I have a large unsecured personal loan that's slowly bleeding me dry.

I've been 5 months delinquent on a line of credit from Bank of America. The first time I called 2 months ago they were willing to settle for 50% of the outstanding balance. I called again today and now they are willing to settle for 25% of the outstanding balance. They will mark the account as "Settled."

From what I understand the banks will not budge when it comes to changing the account status on the major credit reporting bureaus for partial settlement. Is this the experience of everyone on the board here?

Was wondering what I can negotiate with the credit card company (BofA)? I figure the settlement amount. Perhaps offer 20%? What else can I negotiate? Any suggestions?

Thanks!

[jk]

why would you expect anything more than "settled"?

and 25% of the balance; that is a very generous offer.

of course, they could sue you and obtain a judgment that is good for a good portion of your life. Then, when you do have money they get to make a grab for it. Of course, there is always bankruptcy if you are willing to go that route.

[Moise]

They might take 20%
Reason is - their other option is to sell it off to a collection agency and believe me, 20% of the original debt is WAY more than what they sell them to collection agencies for.

Thing is, they might expect that settlement in one lump sum.

Remember, what seems like a "large loan" to you is but ash tray change to these banks.

[digirati]

Moise,

thanks for the advice. Do you think it's better to deal with the bank or wait till it hits the collection agency to make a settlement? What's the advantage of dealing with the bank vs. the collection agency?