Credit Card Debt Options

[RSA]

What is the name of your state (only U.S. law)? Florida

I'd like to know the options I have to respond to a debt collection law firm in Maryland that is contacting me about a credit card debt. I haven't spoken to them personally because I want to know the option that is in my best interest before doing so.

[Proserpina]

Originally Posted by RSA

What is the name of your state (only U.S. law)? Florida

I'd like to know the options I have to respond to a debt collection law firm in Maryland that is contacting me about a credit card debt. I haven't spoken to them personally because I want to know the option that is in my best interest before doing so.

Is the debt yours?

[RSA]

Both my wife and I could use the credit card but it was in her name. I received a letter from a debt collection law firm dated Sep 2, 2009. It was sent from their office in Florida and requested I contact them to discuss resolving the debt to avoid additional collection efforts.

At this point, I'm not sure what my best option is and would welcome your comments. I could contact them directly and discuss payment options, have a debt settlement company contact them on my behalf, hire a lawyer or do nothing at this point until it is determined if they file a lawsuit against us.

Also, what is the SOL on credit card debt?

Thank you.

[Antigone*of*Greece]

Originally Posted by RSA

Both my wife and I could use the credit card but it was in her name. I received a letter from a debt collection law firm dated Sep 2, 2009. It was sent from their office in Florida and requested I contact them to discuss resolving the debt to avoid additional collection efforts.

At this point, I'm not sure what my best option is and would welcome your comments. I could contact them directly and discuss payment options, have a debt settlement company contact them on my behalf, hire a lawyer or do nothing at this point until it is determined if they file a lawsuit against us.

Also, what is the SOL on credit card debt?

Thank you.

Where is your wife? When was the last payment made on the credit card?

[RSA]

My wife and I live together. The last payment was in March, 2008.

[Country Living]

Don't use a debt settlement company. Ever.

[Zigner]

You are well within the statute of limitations. You will need to communicate with them.

[RSA]

I contacted the law firm today and was told the best option they could offer is a settlement amount of $17,000, which had to be paid within 120 days or a lawsuit would be filed. I don't have the ability to pay that amount in the timeframe they specified. Is this a typical response under these conditions? Are they posturing for a position, waiting to see my final response and then offer a better option. Or, will they hold firm to their offer of 120 days? I've scheduled another call to them on Wednesday.

[Proserpina]

Originally Posted by RSA

I contacted the law firm today and was told the best option they could offer is a settlement amount of $17,000, which had to be paid within 120 days or a lawsuit would be filed. I don't have the ability to pay that amount in the timeframe they specified. Is this a typical response under these conditions? Are they posturing for a position, waiting to see my final response and then offer a better option. Or, will they hold firm to their offer of 120 days? I've scheduled another call to them on Wednesday.

For that amount of money? They're not posturing.

[debtcollector`]

Originally Posted by RSA

I contacted the law firm today and was told the best option they could offer is a settlement amount of $17,000, which had to be paid within 120 days or a lawsuit would be filed. I don't have the ability to pay that amount in the timeframe they specified. Is this a typical response under these conditions? Are they posturing for a position, waiting to see my final response and then offer a better option. Or, will they hold firm to their offer of 120 days? I've scheduled another call to them on Wednesday.

They are being very generous to you. The question here isn't whether or not you owe the money or if the CA is being abusive. You need to negotiate for avoiding a judgment.

Read the sticky on negotiation and post back with any specific questions.

DC

[RSA]

The total amount of the debt is $21,000 and I was told they will settle for $17,000, with 4 payments of $4250 per month for 4 months.

I would like to negotiate a settlement of not more than $10,500 or 50% of the total amount due.

Using the sticky on negotiation, I will start negotiating at 25% or $5250 and make that my settlement offer. I will say the money is coming from someone in my wife's family and that is all I have to work with.

Since the sticky says don't pay or make a promise to pay on the first call, how should I proceed at this point?

[debtcollector`]

Originally Posted by RSA

The total amount of the debt is $21,000 and I was told they will settle for $17,000, with 4 payments of $4250 per month for 4 months.

I would like to negotiate a settlement of not more than $10,500 or 50% of the total amount due.

Using the sticky on negotiation, I will start negotiating at 25% or $5250 and make that my settlement offer. I will say the money is coming from someone in my wife's family and that is all I have to work with.

Since the sticky says don't pay or make a promise to pay on the first call, how should I proceed at this point?

Start by being realistic. You are not going to get a 50 discount on debt that is only a year old. You can negotiate for time or money, but i find it very unlikely that you will get both.

DC

[Degatide]

Since we do not know your financial circumstances, age, etc. I would certainly try for the 25% first if you can pay it all at once. If they do agree to any options, make sure you get everything in writting FIRST before sending any money or payments. I have seen these collectors agree on the phone, get your money and then persue the balance even if you think this would pay it in full. Of course there is also Bankruptcy you can consider. You might want to mention that you do have that option to the collector and he may be more agreeable to a settlement. Something is better than nothing. Best of luck .

[RSA]

I'd like to thank those of you that have offered advice on my credit card debt and offer an update on the progress of my negotiations with the DC.

I offered a settlement payment plan of $1300 per month for four months for a total of $5200.

That wasn't acceptable and he said the settlement amount would be reduced to $15,900, if I paid $5200 before the end of September and three additional equal monthly payments to pay the balance of $10,700 by year's end.

I told him I'd have to call him back on Friday and he agreed but said a final agreement must be reached before the end of this month to hold off a lawsuit being filed.

In our first conversation last Monday, his settlement offer was $17,000, broken down into four equal monthly payments. In our conversation today, he reduced the settlement offer by $1100.

I'll contact him on Friday with a counter offer but haven't determined what it will be at this point. Any suggestions?

[Zigner]

Originally Posted by RSA

I'd like to thank those of you that have offered advice on my credit card debt and offer an update on the progress of my negotiations with the DC.

I offered a settlement payment plan of $1300 per month for four months for a total of $5200.

That wasn't acceptable and he said the settlement amount would be reduced to $15,900, if I paid $5200 before the end of September and three additional equal monthly payments to pay the balance of $10,700 by year's end.

I told him I'd have to call him back on Friday and he agreed but said a final agreement must be reached before the end of this month to hold off a lawsuit being filed.

In our first conversation last Monday, his settlement offer was $17,000, broken down into four equal monthly payments. In our conversation today, he reduced the settlement offer by $1100.

I'll contact him on Friday with a counter offer but haven't determined what it will be at this point. Any suggestions?

I suggest that you get any final offer in writing.