Here is a great opportunity for you to ask any debt relief or credit related question and receive input from an experienced expert! Ask a question about settling credit card and other types of debt with your bank, a debt collector, or a debt collection attorney. Are you dealing with a debt buyer? Not sure what you are dealing with? Submit your question and CRN will help you with detailed and useful feedback.
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I have several charged off accounts that will be going off my credit report in the next few months. I am wondering if there are ways to settle these accounts and how best to go about doing that. They have been charged off for years, I have been paying regular small amounts but would like to find a way to just be done with all. All amounts are under $6,500 together they total about 15K. The debts are to Bank of America (2 different accounts), American Express, and a USAA credit card. I am wondering if I might be able to get a settlement agreement and pay them off for less than the whole balance. I watched your videos and read the articles but my situation seems a little different in that these are old debts. All accounts closed and charged of for longer than 4 years. Once the companies stop reporting them negatively, what happens? Any suggestions about how to proceed?
I would set up a phone consult with me here Sloan: https://calendly.com/debtbytes/15min
Be sure to put the details of the situation in the text box of the calendar app.
I want to talk through the payments you have been making, and the timing of them.
If the accounts have been derogatory for 7 years, and are rolling off in a couple of months, that is great fro your credit score! But recency of payments can still mean you could be sued for the debt, so settling could still makes sense.
After receiving a civil summons from a lawyer claiming to represent the creditor, 6 or more months after an accounts been unpaid, how does one find out if the debt has been bought by a debt buyer or not? On credit report it’s only stated that debt has been charged off.
When an original creditor sell the debt they will typically show the charge off, but a zero balance due and owing at the moment, because they sold it.
You can always call the creditor and ask if they have sold your debt, and to whom.
Most creditors do not sell debt.
wells fargo charged off my sons credit card debt app. $1500 5 years ago. how can he find out who bought the debt? he is trying to join the coast guard and they require that this is settled.
Wells Fargo has not been selling debt for longer than that. You can likely call Wells Fargo and they have it internal and you can resolve the debt with them. Let me know if that is not the case and we can go from there.
I owe 17000 to bmo credit card company. It is getting very hard for me to pay the min payments. I have missed some payments on a line of credit but try to make sure I never miss my credit card. I would like to try and do the lump sum payment, what should I do
How long will it take you to have about 40% of the balance on your BMO credit card? What is the interest rate on the card?
I am wondering, if I take a temporary lower rate, because it will help to stop accruing interest faster than I’m making minimum payments, will my credit score be effected?
Typically not, but that assumes you have not missed payments to date. It sounds like you are enrolling in a temporary hardship plan with just one creditor?
Hi Michael, I just wanted to know
1) if you recommend sending in debt validation / disputes letters?
2) I get the feeling that most American don’t do it so I’m not sure if there are any down sides?
Best,
Andrew
I am not a fan of sending dispute letters and validation requests. Not even to play hot potato with debt collectors because you cannot afford to, or have no desire to, resolve a debt. There are some limited times I would suggest using one for strategic reasons when trying to resolve a debt.
I cover the downsides in that link.