I have looked into debt settlement co. a while ago (a couple months). They take a monthly sum from you and put it in an account. After so much has built up, they go to your creditors and say "she has this amt., will you settle the account for that?" I was wondering has anyone done this and did you use a company or do it on your own. I was thinking of doing this when taxes come back w/ my cc. I owe $530 and would like to see if they will take about a hunded less. I just want to get this cc paid off and the account is closed anyway.

I have never done what you are talking about. We have done debt consolidation when we refinanced our house. The only concern I would have if I were you would be how this would effect your credit/credit score. Ask them(the debt settlement co) what happens to your credit...will it be shown as paying off the debt or will it be shown as something else? Just a few things to think about. I hope it all works out well for you.

__________________

When DH and I were first married he had a huge medical bill he had gotten when he was uninsured. He had been paying on it faithfully for 8 yrs, and still had 7000 left. We were newlyweds and trying to organize our budget and negotiate where we could, well, he called the hospital and asked if there was anything he could do to bring down the bill, they negotiated that if we paid 4000 by the next month they would call it even. We asked that a letter be typed up showing the debt was cleared. It was so great to get rid of that bill!

I have done this, but not the way you are talking about! We had a ccard bill in collections and we are paying 260.00 a month to get in paid off in a year and they knocked off about 800.00 for us making that payment arrangement.
So there is a chance that if you are willing to pay a lump sum that they will knock off some of the balance.
Good Luck

__________________


CaRtEr
April 19, 2008

My husband had a large cc debt when we married and he was able to negotiate with the cc co. on his own. Don't go through anyone if you don't have to. It can be a rip off!

just call the credit card company tell them the situation and that you want to close the card(if thats what you want to do) ask for a reasonable payment plan to pay it off or reduce your interest rate i would not pay a company to do the same thing you can do just call the credit card company and defanately not for only $530.00.

__________________
'The will of God will never take you where the
Grace of God will not protect you.'

HAVE A BOOTIFUL HALLOWEEN

I don't think it would be worth the hassle to save $100. I'm assuming any type of company that would do this would then charge you a fee on top of that and in the end you wouldn't be saving much money. Plus the way you explained it, they're not doing anything you couldn't do yourself. I'd call the credit card company first and see what you can work out with them. (oh, I've heard if you get debt erased then the amount forgiven is almost like a gift and will be taxed the next year - i could have understood wrong, but this is what I heard)

How much a month do you have extra to pay towards this bill? Are you current with them? I'd just keep plugging away at it till it's gone! Can you make some extra cash to get it done sooner? Have a garage sale, find a consignment store (especially one that will pay up front if you can), work overtime, try out craigslist... do what you can to get rid of this card the good old fashioned way!

Good luck!

__________________
Stay at home mom to my 3 boys... ages 5, 3 & 1!

I can do all things through CHRIST who strengthens me. Philippians 4:13

This is all I Am Thinking.

I Don't even know If I would Try to Persuade the company to Only Come Down 100.

I Would try If I had to And it was 1000.00 - But I Doubt 100. -



I Definatly Wouldn't Work with A Different place to Save 100.00 either I am sure they charge a fee-

You saved me the time in typing it!

__________________
Read my recent blog: My Frugal Mistake
Check out the Mommysavers Group on Facebook

Let's see a Mommysavers Member featured on Oprah! Click here for more information

Heck, I would ask them what they would take if I paid it in full because you never know what'll they take and any little bit you can save is money in your pocket! $100 or $1000, money is money! I do this with all our medical bills - some companies say no and some take up to 20% off. So call them and ask - it can't hurt! But I wouldn't go through a company to do it.