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I posted this because I am in massive credit card debt ($12,000) and don't have the means to pay it off. I racked up most of this debt while I had a steady, good-paying job. Then I quit my job because I got injured and decided to go back to school full-time. I am on time with payments, but my only income right now is from school loans and a little side-job on campus. It is breaking my bank to make the monthly payments and was wondering if there is a way to settle the account for less than what I owe? I have a friend who did this recently, but I don't recall why/how this was done. If you have any experience with this, please let me know! Other than this personal difficulty with debt, I have stellar credit.
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∙ 15y ago
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How does a credit card account settled for less than the full amount effect a cosigner?
A settled credit card account affects the co-signer in the same manner as the primary card holder. Settlement is payment for less than the full balance on a defaulted debt. Defaulted debts ruin your credit record. The co-signer is liable for the debt and the record of its' activity shows on that persons' credit for the full reporting time period.
How does a credit card debt settlement affect your credit?
Answer:Debt settlement will have a larger effect on your credit. When a debt is settled for less than its full value, the creditor will note that on your credit report. The damage is much less than you'd experience with bankruptcy or default, and in most cases your credit will improve within a couple of years.I took help of Freedom Debt Relief to settle my credit card debts, its been more than a year that I enrolled into their program and now I am almost debt free.
Is debt settlement bad on your credit report?
Debt settlement will have some bad effect on your credit. When a debt is settled for less than its full value, the creditor will note that on your credit report. The damage is much less than you'd experience with bankruptcy or default, and in most cases your credit will improve within a couple of years.
Can credit card debt be inherited in Texas to the children?
It is not 'passed on.' However, the debt does take the value out of the estate. That means the children will inherit less.
In a credit card debt settlement what does it affect and what is reported to the credit bureau?
ANSWER: Settling on card card debt should be the last option to take. Unless you write a "Restrictive Endorsement" "By cashing this check Payee agrees to accept this check in full payment of the account as agreed and agrees to remove all derogatory information from Remitter's Credit Reports" on the front of your check, as proof on your bank statement, you will receive a derogatory item on your credit report. Your credit report will state you settled in an amount of less than full. ANSWER: {| |- | In any debt settlement program you are made to default on your repayment for a certain time and then your debt amount is negotiated with your creditor which does show in your credit report. You can rebuild your credit later once you are debt free. Freedom Debt Relief has a good plan called 'debt reduction' which can help you in reducing your debt levels and become debt free in the earliest possible time. They even give help you with credit repair once you are done with the program. |}
How does a credit card account settled for less than the full amount effect a cosigner?
A settled credit card account affects the co-signer in the same manner as the primary card holder. Settlement is payment for less than the full balance on a defaulted debt. Defaulted debts ruin your credit record. The co-signer is liable for the debt and the record of its' activity shows on that persons' credit for the full reporting time period.
How does a credit card debt settlement affect your credit?
Answer:Debt settlement will have a larger effect on your credit. When a debt is settled for less than its full value, the creditor will note that on your credit report. The damage is much less than you'd experience with bankruptcy or default, and in most cases your credit will improve within a couple of years.I took help of Freedom Debt Relief to settle my credit card debts, its been more than a year that I enrolled into their program and now I am almost debt free.
Is it possible to reduce debt loans ?
Unlike credit card debt, which can be settled for less than is owed, a conventional lender (bank, credit union) is not able to offer a payoff of an amount substantially less than what is owed. Credit card debt has interest added to the amount owed, and then more interest added to that (compounded). Bank loans generally are simple interest loans. Credit card companies and subsequent collection agencies that acquire the debt, are able to settle for as much as 40% percent of the amount owed, because the amount owed is accumulated interest and penalties. This is not the case with conventional loans.
Is debt settlement bad on your credit report?
Debt settlement will have some bad effect on your credit. When a debt is settled for less than its full value, the creditor will note that on your credit report. The damage is much less than you'd experience with bankruptcy or default, and in most cases your credit will improve within a couple of years.
Can credit card debt be inherited in Texas to the children?
It is not 'passed on.' However, the debt does take the value out of the estate. That means the children will inherit less.
How long before credit card company sues for nonpayment?
Generally, it will sue (or sell the debt to someone who will sue) within the statute of limitations for suing on a credit card debt in your state. This is often 5 years, but it can be less or more.
In a credit card debt settlement what does it affect and what is reported to the credit bureau?
ANSWER: Settling on card card debt should be the last option to take. Unless you write a "Restrictive Endorsement" "By cashing this check Payee agrees to accept this check in full payment of the account as agreed and agrees to remove all derogatory information from Remitter's Credit Reports" on the front of your check, as proof on your bank statement, you will receive a derogatory item on your credit report. Your credit report will state you settled in an amount of less than full. ANSWER: {| |- | In any debt settlement program you are made to default on your repayment for a certain time and then your debt amount is negotiated with your creditor which does show in your credit report. You can rebuild your credit later once you are debt free. Freedom Debt Relief has a good plan called 'debt reduction' which can help you in reducing your debt levels and become debt free in the earliest possible time. They even give help you with credit repair once you are done with the program. |}
How much credit card debt do I need to qualify for consolidation?
Most debt consolidation companies advertise that you need $10000 in debt. There is actually no real amout, but less than $10000 and you are generally advised to pay it off yourself to save your credit.
Can you forget a debt a debt or have a debt forgiven and not have it hurt your credit?
When a debt is forgiven (a forgetadebt as you call it), it will be reported to the credit bureaus. But you will have less debt, which is a positive.
Why do bank use the term credit instead of debit?
Banks use Credit because Debit makes it sound like a debt, while credit sounds like YOU get something. If it sounds like a debt, you spend less and the bank loses money. With a credit card, the company is advancing you money on your promise to pay, a debit card means you already have the money in your account.
How much debt does the average American have?
The average American has a credit card debt of around fifteen thousand dollars. This is just the average though, some people have more and some have less.
How can one reduce their credit card debt?
One can reduce their credit card debt many ways. By not using it and making regular payments is a good way. One can also take a loan at a bank to consolidate and pay off their credit cards. By making one payment to the bank rather than many, one can pay less interest.
