I recently posted on settling my own cc debt. It was a small amount (500). Well, anyway, we've had this loan for a water treatment system since dd was a bun in the oven( she's 5) and to make a long story short, we'll be paying on it for a long time. We went on the hardship program to get a lower payment and interest rate for a year till we were in a better place financially and I blew it. I couldn't make a payment last month so we're back on the high interest rate and big payment. The guy from their collection department called and I got really frustrated. After talking (or rather arguing) they said they'd settle the debt for 2600 (we owe about 3600). I said I'd need to talk to dh about this before we decided anything. Sorry, this is gonna be long. We were going to put about a 1000 toward debt of our tax refund (we owe the plumber for the furnace and a small credit card). Don't know how much we're getting back yet. So paying 2600 out of our tax return was a flabbergasting to us. I'm just wondering since the collections guy just pulled this 2600 amount out if I should try to negotiate something lower? I don't want them to laugh in my face, but dh was thinking we should offer 1800. I have no idea what to do. We've been paying on this debt for so long the creditor has gotten alot of interest out of us. What would you do? I don't want to give up any money if I don't absolutely have to. I also want them to take me seriously about the settlement. HELP!

First, don't offer a settlement unless you have the money that you can send TODAY.

Second, have hubby negotiate the settlement. You're not up to it and the collections guy might take hubby more seriously.

Third, change your withholding. It is ridiculous to get a refund in excess of $2000 when you're having trouble paying your bills month-to-month.

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Gee, is this a Kinetico system? We had so many problems with them. I tried to get a payoff amount and they tried to tell me I was renting it, although I have SALE paperwork. They tried to tell me I owed a lot more than I did. I told them to come rip the thing out if they think they're right...nothing but the runaround. They gave me a low payoff, which we did, then they turned around and started sending monthly bills again. Hate them, but like their product.

Anyway...I would do the $1800. They'll hem and haw, but you don't know until you try. I agree about having dh do it.

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This was from 5 years ago? Legally something can only stay on your credit report for 7 years, so if they aren't willing to work out a low settlement they would be crazy.

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To give more info. We bought the system about 5 1/2 years ago. We got financed for it and have been paying monthly payments on it since.