[cmaddy2]

I owe Washington Mutual (Providian) $16,000 in credit card debt. I am two months behind and every month the balance goes up $450.00 in interest, $39.00 in late fees, and $40.00 in over the limit fees. I want to settle and can borrow $9,000. Do you think they will accept that and what is the best way to settle without them suing me later for the balance? My total debt is $80,000 and I am current on all my other cards.

[Clough]

Have you tried calling them? If not, then I would suggest calling them with a witness on another phone line as to what is being said. I would let Providian know that there is a third party listening. I have had to negotiate things about several credit cards. Have always done this by phone. It has always worked. We worked things out with payment plans that I can afford rather than just writing off the cards and messing up my credit even more.

If things do get to the litigation department with them, you may not be able to negotiate with them except in court. Hopefully, others might come along also here to offer you advice.

[cmaddy2]

I tried to talk to them but they won't discuss the account with me because they sent it to a collection agency. The collection agency won't negotiate because they say their job is to give me a three month chance to catch up with my over the limit amount and when I catch up then they will give the account back to WaMu. It's a vicious cycle, neither will talk to me about a settlement. I don't want to make payments because they are charging me 32% interest! It's nice to hear that you were able to settle some debts. I am desperately trying to settle so I won't have to declare bankruptcy.

[ScottGem]

I doubt if they would accept that type of settlement until the account is charged off. And by that time what you owe will be higher. I would suggest borrowing the money to bring the account up to date, then try to negotiate a lower interest rate so you can reduce your payments.

[Fr_Chuck]

Yes, they don't want to settle yet, they really want the interest and charges to add up for months first ( you owe more money that way)

If you can get money, can you pay the paymnents current, and then keep up the payments? '

As for as them settling, I doubt at two months late, they will settle at all, there is no requirement that they have to ever settle. After the account is 6 to 12 months old, they may. But then if you have a good job and live in a state where they know they can garnish your wages, they may still want more than 1/2 to settle.

[cmaddy2]

I can borrow enough to get the account current but they want payments of $650.00 a month and I take home $1800.00 a month. If I paid them what they are asking I would have to stop paying 18 other credit cards. I am going to try to get them to stop the interest or settle because those payments are too high. Thanks so much for taking the time to answer my questions. I have been dealing with these defaulted cards for 9 months and I am getting weary. I owe BOA $25,000 and they gave me a 5 yr deal of $400.00 a month and 0 interest. I will be paid in full in 67 months.

[slowandeasy]

Hello Cmaddy

If you also owe 18 credit cards and you are having trouble now , it may only get worse.
Chapter 13 bankruptcy may be the way to go if you can't see a light at the end of the tunnel. I believe if you owe something you should pay it, but with that being said sometimes life throws us a curve ball and we have to look at what is best in the long run. If you are stressing out over this talk to a bk lawyer and see what he thinks. Hopefully you can work something out with the cc company without having to file.

[cmaddy2]

I have talked to 5 bankruptcy lawyers and I only quality for a chapter 13. My payments, would be more than I am paying now due to relatively high income since they include my husband's pay, and no secure debt payments. Besides, I owe the money and I really want to pay my debts. I just got sick, missed a few payments and had my rate jacked up after almost 10years of on-time payments. I am going to call WaMu (providian) in a few weeks and plead for a rate decrease and lower monthly payments. I have made very good deals with all of my other cards, most of which gave me 0 to 10% interest. Target gave me 0% for two years to pay off $1100. I live in South Carolina where you cannot garnish paychecks and I don't own a car or a house so I am hoping they will agree to better terms.

[ScottGem]

Good luck

[sparco 64]

Credit counling company with have a work out program to reduce or eliminate late fees or reduce you interest.I have tried this and I paid off total dept in three years instead of 15 if you pay mimimal