How can I negotiate a credit card settlement for pennies on the dollar?

I have massive credit card debt and am contemplating bankruptcy. I am current on all accounts but my work is going down the tubes. Paying the minimums is a road to nowhere, my rates have increased sharply over the last few months.|||Good luck trying to do that without destroying your credit.|||It won't happen unless you are way past due on your cards...like 3 months at least....more like 4 - 6 months past due...at the charge-off level. You can deliberately default on your cards and use the money to save money for settlement offers....like in the 25 - 50% range. This is a risky tactic....not all creditors will settle...but will take you to court instead. The consequences of a failed debt settlement...whether you do it yourself or hire a debt consolidation firm, are very unpleasant....your creditors can take you to court and this will lead to a judgement...leading to possible wage garnishment, bank account freezes and liens on property.





The problem here is that if you have "massive" credit card debt....after paying back thousands of dollars in settlements...you'll still have a ruined credit rating. The IRS considers forgiven debt to be the same as earned income, so you'd have to add all that settled debt amount to your income next year and pay whatever additional taxes.





If your debt is out of control...there are two real options: entering into a debt management plan or filing for Chapter 7. You may want to enter into a non profit debt management plan like Consumer Credit Counseling Services (CCCS). They can negotiate reduced interest and payments. They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to "enrolled in debt management." This does not damage your credit, but it may make it difficult to obtain new credit while you are enrolled in their program....so don't use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would might be denied while you're enrolled in the CCCS debt management program...You can get a referral at: http://www.nfcc.org





If this does not work and the reduced payments from CCCS are still too high, then you should think about filing for Chapter 7...do what's best for you.|||Without being seriously delinquent and ruining your credit, there's pretty much no way to do that.|||Call the creditors up and tell them that you are sinking into a sinkhole with your debt, and that you are going to file bankruptcy - make a list of the bills you want to pay off and a list of bills that charge the most interest. Tell them you are willing to send back their credit card and pay double the minimum payment - if they'll stop charging you interest! Ask each in turn that question and tell them that you want to honor your debts and will NOT list them in your list of debts for the bankruptcy - in return for their consent to this pay back (must be in writing) Otherwise, they'll lose you as customer and all the money you owe them. Good Luck!|||You will have to stop paying all the cards. Wait 180 days or so, right before the card companies want to do a "write off" (which means it goes to collections).


In the mean time, save up as much cash as you can, so you can settle when this time comes.


After about 6 months, call them up and get an agreement IN WRITING to pay the debt in full. Make sure you have the cash to make a real settlement. Pay with cashiers check using overnight express delivery (only AFTER receiving their paperwork on the agreement).


Yes they WILL lie to you!





If they send it to collections, it is the same process. NEVER EVER send any money without a written agreement in your hands first!


If they won't write it down, then they are lying.





I did it.|||See http://www.esuperfind.com/lowermybills.p鈥?/a> the affiliated site is an Experian company BBB approved so very safe.


They might or they might not have you on. It depends on many factors and where you are located.|||you can try to negotiate your account by yourself, but its alot better and you get bettert settlemtns if you go with a debt settlement company. i used a company called debt free league, they gave me a lower monthly payment and reduced my debt in half. i would definetly recomend this, if your struggling with your monthly payment.s