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Pay the due balance!

If the credit card company has filed suit, immediately file an answer to the complaint. Then call the company or its attorney and offer a settlement. If by some means you are able to come up with a substantial portion of the amount due, usually about 75%, say by borrowing from a relative or friend, the company would go for it rather than getting a judgment and collecting a few dollars a month from a garnishment of wages. The company will write of the remaining portion of the debt and get a tax deduction, therefore even though it "loses" 25% on the debt itself, it will get some of that back as a tax deduction.

Credit card companies are motivated to take less because it's more of a problem to collect small amounts of money on a monthly basis rather than one large amount in a one time payment.

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โˆ™ 2010-07-27 16:25:33
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Q: What are your options if credit card companies are suing you for unpaid balances?
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