how to negotiate settlements of credit card debt?

Massachusetts

If you owe a large amount of money($10,000+) on several old accounts(3 years +) can you settle for significantly less? If so, how much less? I've received offers as low as 20 cents on the dollar or there abouts. I want to pay my credit cards off in lump sums. Would it be unreasonable to offer them this? Should I offer less and see if there's a middle ground? Should I ask them to make an offer? I need advice on how to eliminate them without getting more overwelmed than I already am. In a nut shell, is it typical to settle for 20% of debt and how do I set the wheels in motion?

[Jeter]

It's not unreasonable to offer anything. They will either accept it or reject it. It's up to them. They don't haggle. They will either offer you settlment rates or not. If they do, it will be their terms, period. Your negotiating skills won't make a difference. Credit card companies will start offering settlement options if they feel they are on the road to a chargeoff.

Understand that settlements are not the same as paying in full and will appear on your credit report as a settlement, not as a paid in full.

It's not typical to settle for $2,000 of $10,000 unless you're claiming bankruptcy.

Best way to set the wheels in motion is to be proactive. Call the companies and find out your payment options.


Jeter

[JETX]

One other thing to consider....

You are already 3 years into the MA statute of limitations, which is 6 years on open contracts. This means you are half way through the debts expiring without further action.

If you do pay them anything, and don't have a settlement agreement IN WRITING in case they try to renege, you will have reset the statute 'clock' for another 6 years.

[bigun]

One more thing to consider. Do not initate any settlement talks. As a former banker, when someone was in serious default and called out of the blue offering 20 cents on the dollar, I knew he really had about twice as much or more than his offer. At that point, I called the bank's lawyer and had a lawsuit filed the next day. My plan was to either get paid as much as possible as soon as possible or, force him into bk so we'd get a shot at him in the creditor meeting. All I needed was some indication of asets.