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Thread: Should I Settle It??
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06-21-2010, 06:36 PM #1Registered User
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Should I Settle It??
DH and I ran up an Amex bill 3 years ago that quickly went into collections. For 2 years, I have been making payments through the collection agency. Scheduled drafts, never a problem. As the guy on the phone said the only way you would be a better case for us was if you just paid it off, lol.
Anyway, DH got a new job and old job will be paying his for the vacation that he never took. We will have about 2 full paychecks to throw at debt. Our payment agreement with collections ran though this month. So, 1. now we need to decide if we keep paying the same amount and put down a downpay as they call it, 2. up the payment and have it paid off in 8 months, or 3. settle it and pay it out of DH's vacay pay.
Right now, our credit is crap. We have no plans to use credit anytime soon. I'm just not sure what to do. I feel weird settling for less than we owe, even though I bet the "discounted amount" would just be fees we were charged. Advice is appreciated.Working on Our Debt a Day at a Time:
Chase #1: Paid $1307.12 of $1925.04
Bank of America: Paid $1054 of $1600
Dillard's: Paid $953 of $1750
Medical (too much to list so I am going one at a time):
Amex #1: Paid $3975.50 of $3975.50 Paid in Full 3/09
Chase #2: Paid $4489.75 of $4489.75 Paid in Full 12/09
Macy's: Paid $337.24 of $337.24 Paid in Full 9/10
Lane Bryant: $300 of $300 Paid in Full 7/10
MRI Paid $1080 of $1080 Paid in Full 2/11
Amex #2: Paid $8286.17 of $8286.17 Paid in Full 7/11
Foot Surgery: Paid $1759 of $1759 Paid in Full 8/11
Furniture: Paid $2000 of $2000 Paid in Full 3/12
2012 Fling 319/2012
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06-21-2010, 09:16 PM #2Registered User
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If you have the funds, I would try and settle and be done with it. Even if you can still make payments your credit will still be ruined.
Also the difference will be counted as 'income' for your 2010 taxes and should get something in the mail come tax time. And if you do this, make sure you get it in writing so they can't come back on you later.
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06-21-2010, 11:36 PM #3Registered User
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Also, this is no interest, no fees. I have other (many other) accounts that have interest.
Working on Our Debt a Day at a Time:
Chase #1: Paid $1307.12 of $1925.04
Bank of America: Paid $1054 of $1600
Dillard's: Paid $953 of $1750
Medical (too much to list so I am going one at a time):
Amex #1: Paid $3975.50 of $3975.50 Paid in Full 3/09
Chase #2: Paid $4489.75 of $4489.75 Paid in Full 12/09
Macy's: Paid $337.24 of $337.24 Paid in Full 9/10
Lane Bryant: $300 of $300 Paid in Full 7/10
MRI Paid $1080 of $1080 Paid in Full 2/11
Amex #2: Paid $8286.17 of $8286.17 Paid in Full 7/11
Foot Surgery: Paid $1759 of $1759 Paid in Full 8/11
Furniture: Paid $2000 of $2000 Paid in Full 3/12
2012 Fling 319/2012
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06-22-2010, 05:07 AM #4Registered User
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Originally Posted by TigerGirl1226
Personally - and this is just my opinion, I would do the following - unless I read it wrongly:
You said that option 3 would be to settle it with dh's vacation pay. This means (for me) that you would have $3427 at your disposal.
You also said that this bill has no fees and no interest.
OK - then I would pay off Chase, Bank of America and and pay off as much of Dillard as you can. This wil leave you with a small amount still for Dillard, the Macy's, the Medical and the Amex.
Because you have paid off the other ones you will probably have extra cash to snowball these last 3 quickly.
Again this is only my opinion.
Good luck.*Avril*
Mom to Laurens (30), Timothy (26), Dimmen (24), Lloyd (23) and Fiori (21).
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06-22-2010, 09:23 AM #5Rude and Vile Master
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You're paying them on a regular basis now - why would they settle?
If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.
Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"
Greebo(Nerd Spender): Loving and extremely patiently tolerated husband of ceashels.
WARNING: Y Chromosome behind the keyboard. Adjust your listening filters appropriately!
ThreeTwo mortgages,twooneno car loans,oneno credit cards, and a partridge in pear tree!
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06-22-2010, 09:40 AM #6Super Moderator
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I'd be paying off those bills that have interest accruing first.
~*Darlene*~
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06-22-2010, 10:10 AM #7Registered User
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Same here - I've got a van repo with no interest - that's the LAST thing on my list of things to pay. Originally Posted by Darlene
If you settle, you will have to pay taxes on the difference...the IRS really screwed us on that one.
Pay off and CLOSE the accounts that you are paying interest on. Close any other open accounts, then pay them off. If your credit is bad, closing the accounts won't hurt it any.BEF fully funded
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mortgage - 63873
heloc - July '11 - $12,000 8,203
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06-22-2010, 10:15 AM #8
You have to know the least they'll settle for. Then figure the amt. of interest you'll save by paying the other bills first. Which is greater. Pay the one that saves the most. In the negotiation state that you are considering bankruptcy and want to pay them first. I got several hundred off medical and state tax fees. I don't know if Amex will budge. But I would try. I would certainly try.
Parker-She should leave them open for awhile but don't use them. This proves she can handle having credit. She can close them slowly one by one.
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06-22-2010, 11:46 AM #9Registered User
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It was offered to me. I'm not quite sure why other than they want o get it gone. The balance is just shy of $2700 and their offer was $2100, but said I could make an offer and they would counter. Originally Posted by Greebo
I've never even considered this before so I'm not really sure why they'd do it.Working on Our Debt a Day at a Time:
Chase #1: Paid $1307.12 of $1925.04
Bank of America: Paid $1054 of $1600
Dillard's: Paid $953 of $1750
Medical (too much to list so I am going one at a time):
Amex #1: Paid $3975.50 of $3975.50 Paid in Full 3/09
Chase #2: Paid $4489.75 of $4489.75 Paid in Full 12/09
Macy's: Paid $337.24 of $337.24 Paid in Full 9/10
Lane Bryant: $300 of $300 Paid in Full 7/10
MRI Paid $1080 of $1080 Paid in Full 2/11
Amex #2: Paid $8286.17 of $8286.17 Paid in Full 7/11
Foot Surgery: Paid $1759 of $1759 Paid in Full 8/11
Furniture: Paid $2000 of $2000 Paid in Full 3/12
2012 Fling 319/2012
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06-22-2010, 11:49 AM #10Registered User
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Ok, this afternoon I will sit down and figure out the savings of paying off that interest bearing loans vs the savings of settling the debt.
I talked to DH last night and we agreed that we would be able to pay it off in 8 months if they are willing to set us up on payments again. So that is also an option.Working on Our Debt a Day at a Time:
Chase #1: Paid $1307.12 of $1925.04
Bank of America: Paid $1054 of $1600
Dillard's: Paid $953 of $1750
Medical (too much to list so I am going one at a time):
Amex #1: Paid $3975.50 of $3975.50 Paid in Full 3/09
Chase #2: Paid $4489.75 of $4489.75 Paid in Full 12/09
Macy's: Paid $337.24 of $337.24 Paid in Full 9/10
Lane Bryant: $300 of $300 Paid in Full 7/10
MRI Paid $1080 of $1080 Paid in Full 2/11
Amex #2: Paid $8286.17 of $8286.17 Paid in Full 7/11
Foot Surgery: Paid $1759 of $1759 Paid in Full 8/11
Furniture: Paid $2000 of $2000 Paid in Full 3/12
2012 Fling 319/2012
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06-22-2010, 11:53 AM #11Rude and Vile Master
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Hell if they're offering 600 off 2700 that's a 22% savings! If they're offering, hell yes, I'm negotiating.
Offer 1700, see what they say!
If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.
Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"
Greebo(Nerd Spender): Loving and extremely patiently tolerated husband of ceashels.
WARNING: Y Chromosome behind the keyboard. Adjust your listening filters appropriately!
ThreeTwo mortgages,twooneno car loans,oneno credit cards, and a partridge in pear tree!
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06-22-2010, 11:58 AM #12Registered User
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Is that more than they usually offer? Originally Posted by Greebo
Hell if they're offering 600 off 2700 that's a 22% savings! If they're offering, hell yes, I'm negotiating.
Offer 1700, see what they say!Working on Our Debt a Day at a Time:
Chase #1: Paid $1307.12 of $1925.04
Bank of America: Paid $1054 of $1600
Dillard's: Paid $953 of $1750
Medical (too much to list so I am going one at a time):
Amex #1: Paid $3975.50 of $3975.50 Paid in Full 3/09
Chase #2: Paid $4489.75 of $4489.75 Paid in Full 12/09
Macy's: Paid $337.24 of $337.24 Paid in Full 9/10
Lane Bryant: $300 of $300 Paid in Full 7/10
MRI Paid $1080 of $1080 Paid in Full 2/11
Amex #2: Paid $8286.17 of $8286.17 Paid in Full 7/11
Foot Surgery: Paid $1759 of $1759 Paid in Full 8/11
Furniture: Paid $2000 of $2000 Paid in Full 3/12
2012 Fling 319/2012
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06-22-2010, 07:02 PM #13Registered User
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I have family that claims that once it gets to this stage they get it down to 50% without a problem.
If it was me and you could get rid of a monthly payment I would get rid of it. Although the Am-ex is at no interest, you could count the 22% savings as interest you would have to pay if you stay on payments. So in fact you would be paying 22% on the Amex.
My Mom recently settled with Amex for 25% of the balance. Of course all of the balance was interest and penalities.
Good Luck!
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06-22-2010, 08:40 PM #14Rude and Vile Master
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Dunno, duncare. Originally Posted by TigerGirl1226
They're expressing a willingness to negotiate - the offer for 2100 is on the table - push for better!If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.
Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"
Greebo(Nerd Spender): Loving and extremely patiently tolerated husband of ceashels.
WARNING: Y Chromosome behind the keyboard. Adjust your listening filters appropriately!
ThreeTwo mortgages,twooneno car loans,oneno credit cards, and a partridge in pear tree!
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06-23-2010, 01:33 AM #15Registered User
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Yeah, I've heard some will settle for fifty cents on the dollar.
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