Debt Consolidation Payoff?

[onthepipe]

What is the name of your state (only U.S. law)? TX
My near-poverty level income brother consolidated his $6K debt incurred on two credit cards with a debt consolidation company. He still has 3 of the 4 years to pay to the consolidation company. The consolidation total cost ended up being nearly double what the debt was on the two cards. Is it possible that the consolidation company will take a lump sum settlement on this debt? If so, what percentage is reasonable?

 

[Zigner]

What is the name of your state (only U.S. law)? TX
My near-poverty level income brother consolidated his $6K debt incurred on two credit cards with a debt consolidation company. He still has 3 of the 4 years to pay to the consolidation company. The consolidation total cost ended up being nearly double what the debt was on the two cards. Is it possible that the consolidation company will take a lump sum settlement on this debt? If so, what percentage is reasonable?

My Magic-8 ball says "Ask again later"

 

[dlw99]

What is the name of your state (only U.S. law)? TX
My near-poverty level income brother consolidated his $6K debt incurred on two credit cards with a debt consolidation company. He still has 3 of the 4 years to pay to the consolidation company. The consolidation total cost ended up being nearly double what the debt was on the two cards. Is it possible that the consolidation company will take a lump sum settlement on this debt? If so, what percentage is reasonable?

Offer them nine hundred bucks and go from there. Let them squawk and threaten and go through their routine. Settle for two thousand. If you are persistent, chances are they'll take it.

 

[Zigner]

Offer them nine hundred bucks and go from there. Let them squawk and threaten and go through their routine. Settle for two thousand. If you are persistent, chances are they'll take it.

Oh, YOUR Magic 8-Ball appears to guess the future better than mine

 

[onthepipe]

Thanks for the replies. The question may have seemed too general but I was simply trying to see if someone knew from experience if these companies would settle the debt and at what cost.

 

[Zigner]

Thanks for the replies. The question may have seemed too general but I was simply trying to see if someone knew from experience if these companies would settle the debt and at what cost.

Nobody has the exact experience you are looking for. dlw99 will guess (but won't admit it). Everybody else will tell you there's no way to know.

 

[dlw99]

Nobody has the exact experience you are looking for. dlw99 will guess (but won't admit it). Everybody else will tell you there's no way to know.

Look, Z, I help people with this stuff all the time. It's like a wrestling match. They tell you no way, and their bottom line is XXXX dollars. You go back and forth and they make a deal. They get a faster, bigger commission if they take a lump sum deal.

Poster, there is no way to know exactly what their bottom line is, but they WILL negotiate for a lump sum.

Start small and try to settle for one third to one half of the figure owed.

 

[dlw99]

Thanks for the replies. The question may have seemed too general but I was simply trying to see if someone knew from experience if these companies would settle the debt and at what cost.

From experience, and lots of it, I know that these companies DO settle debt. In this economy, they are more flexible than ever. Of course no one can tell you the exact cost - the process is a negotiation.

Aim for a FRACTION of the cost - like a third to half.

 

[Zigner]

See - guesses with no basis. I'll just call him Guessmeister

 

[onthepipe]

Wow, quite a string of responses! Thank you all BTW. My brother has a job, banking account, junk truck and has never been married. The bank account normally has less than $50. Nothing of value except a home he is about to inherit worth about $30K. His income is around $15K - $18K/yr. and this is in the Dallas area. I was going to offer to pay this off for him. The company knows his address, his employment, etc. His credit score means nothing as he is nearly 60 and will never have any income to purchase anything of value anyway. As it is right now, he can barely pay his bills and this monthly payment to them is simply too much for him to handle.

 

[Zigner]

Wow, quite a string of responses! Thank you all BTW. My brother has a job, banking account junk truck and has never been married. The bank account normally has less than $50. Nothing of value except a home he is about to inherit worth about $30K. His income is around $15K - $18K/yr. and this is in the Dallas area. I was going to offer to pay this off for him. The company knows his address, his employment, etc. His credit score means nothing as he is nearly 60 and will never have any income to purchase anything of value anyway.

Have him contact the creditor and ask THEM what they'd accept.

 

[onthepipe]

Also, since this is a debt consolidation company, don't they usually pay off the creditors and he is simply paying them? In other words, contacting the two initial credit card companies is a waste of time, correct?

 

[Zigner]

Also, since this is a debt consolidation company, don't they usually pay off the creditors and he is simply paying them? In other words, contacting the two initial credit card companies is a waste of time, correct?

HE or THEY would be the one to answer that. It may or may not be correct. I'm leaning towards it NOT being correct...but that's a guess (and I admit it)

 

[Zigner]

If I were you, I would not be in a hurry to pay. No attorney would give you that advice fearing for his own rear. Let the company do more work to collect. Likely, they will not succeed. If your brother moves to this house and does not inform the company and post office of his new address, the company will have a hard time tracking him in order to serve court summons.

TERRIBLE advice! All your "advice" will do is cause a default judgment to be entered against the debtor. Yeesh!

 

[onthepipe]

Thanks Simon. There may be a slight misunderstanding. My brother is already paying this debt consolidation company and has been for one year. He has 3 years left to pay and I was simply trying to determine if they would take a lump sum payoff other than him having to pay for 3 more years. I would like to tell him to simply stop paying them entirely but I'm sure they would threaten him with legal action. He's also paying on a DWI including probation, breathalizer and TX Dept. of Public Safety fees. Realistically, he can barely afford to eat.