Ask Me Help Desk - Debt Settlement

I am in the process of trying to settle over $60,000 in credit card debt. Realistically, what percent of that amount will I end up settling on? I was told to start at a minimum of 25% and go from there, however, from reading some of the questions and answers, I am getting a bit nervous. For example.. we owe Providian (now WAMU), $15,000 and IBS/FIA which I believe is Bank of America $15,000. These are the 2 I am worried about. I have settled with Wells Fargo for 40% of the balance, so of the money I was able to pull together, I now only have $18,000 left. I called a debt settlement company and named a few creditors.. the gentleman told me that Bank of Americal will settle for 15-20% of the balance. Unfortunately, I did not ask about the Providian one. Also, should I wait for the collection agency to call/write or should I try to initiate the settlement before it gets out of hand?

Once the collection agencies start calling, things get very complicated quickly. I would suggest call the major creditors and try to negotiate payments before that happens. There is no reason they can't do this.

The only way... You will have to convince them, one by one, that they will get more money dealing with you and taking a settlement than sueing you and getting a judgment or selling the account to a collector. The lower limit for most banks is around a 40% of the total balance. It will help you if you make yourself appear as poor, no money in accounts, no assets. Whatever money you have to settle take it in cash and put it in a safe deposit box, same with any assets you have... CDs, property... Is a good time to sell, cash, and hide until the mess is settled.

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Originally Posted by goldie_9256

I am in the process of trying to settle over $60,000 in credit card debt. Realistically, what percent of that amount will I end up settling on? I was told to start at a minimum of 25% and go from there, however, from reading some of the questions and answers, I am getting a bit nervous. For example..we owe Providian (now WAMU), $15,000 and IBS/FIA which I believe is Bank of America $15,000. These are the 2 I am worried about. I have settled with Wells Fargo for 40% of the balance, so of the money I was able to pull together, I now only have $18,000 left. I called a debt settlement company and named a few creditors..the gentleman told me that Bank of Americal will settle for 15-20% of the balance. Unfortunately, I did not ask about the Providian one. Also, should I wait for the collection agency to call/write or should I try to initiate the settlement before it gets out of hand?

I'm currently going through a settlement myself. When you said you settled 40% with Wells Fargo, are you paying them 40% of your debt? Or are you paying them 60%?

40% of the balance. They have been the best to deal with. The WORST has been Washington Mutual. They insist they can't go below 50% of the balance. Because of this, I have done hardship payments for the next 4 months in hopes that I can try to settle with them in Dec. I would never recommend anyone use WAMU for ANYTHING. They are difficult in every aspect.