Settling your Chase Credit Card Compared to a Hardship Repayment Plan
I am behind with payments to Chase now for 3 months. I was thinking to later settle the debt, but they are only offering to reduce payments and interest for the life of the balance if payments are made from my checking account in the same amount every month for 60 months.
Is this Chase hardship plan the right way to go, or should I hold out to settle this account?
—RB
Short answer
The Chase hardship plan is the right choice only if you are confident you can make a payment of roughly two percent of today’s balance, on time, every month, for up to five years. If your income is unpredictable, compare it against settling, because missing a single payment usually ends the plan.
Key points on this page
- Chase hardship repayment plans can be temporary, or run as long as 60 months, at a reduced interest rate the whole time. Chase mostly offers between zero and 10 percent.
- Miss one payment and you typically lose the benefits of the plan and go back to the old payment, even 18 months in.
- If Chase will not approve a long term plan, a nonprofit credit counseling agency can often get a better rate reduction and a lower payment across all of your cards at once. Talking with one is free.
- Many people fund a settlement by saving up the money they would have put into a lower monthly payment over 6, 12 or 18 months.
- Chase typically charges off an unsecured debt after 120 or 180 days of nonpayment, then places it with a collection agency or a collection law firm. Chase stopped selling unpaid accounts to debt buyers in 2013.
- You are far better off settling with Chase directly, or with a collection agency working for the bank. The worst settlements tend to come from attorneys collecting for Chase.
First thing to do is consider your current and projected income. Does your budget suggest you can afford a lower Chase credit card monthly payment if the amount was roughly two percent of today’s balance? Are you confident you could keep up that same payment to Chase for 5 years until the balance is paid off?
If you can swing the new lower payment to Chase with confidence, the reduced interest hardship repayment plan is a good program for you.
These hardship repayment plans can be temporary or last for as long as 60 months and carry a lower interest rate the whole time. How low of a hardship plan interest rate will Chase approve? It depends. I mostly see Chase offer between zero and 10 percent interest. This is in line with many major banks hardship repayment plans.
Up to 60 months to make a lower monthly payment is great! Or is it?
You have to be confident you can make the lower monthly payment on time all the time. If you miss one you typically lose the benefits of the plan, and your payments go back to where they were. This means if you were paying for 18 months and suddenly had a random set back or expense causing you to miss a hardship payment to Chase, they could kick you off the plan. If your income is unpredictable, this could be a major concern for you and you may want to compare the monthly repayment plan with a debt settlement approach to your Chase account.
What happens if Chase will not approve you for a lower interest rate?
Banks like Chase will change system wide policies for offering hardship repayment plans from time to time. One of those changes may be to stop offering long term hardship repayment plans (the 60 month lifetime of the credit card balance version), and switch to offering only the 6 and twelve month temporary hardship payments.
There could also just be something particular about your account where it will not qualify for long term hardship payments offered to you direct from Chase.
Here is a work around.
If you are looking to get your credit card monthly payment lower with not just Chase, but other banks like Wells Fargo, Bank of America, Capital One etc., it would be a good idea to talk to a nonprofit consumer credit counseling agency about what they can do for you. The credit counseling industry has long standing relationships with virtually all of the credit card banks like Chase. An agency can sometimes get you a better interest rate reduction and lower monthly payment across all of your credit cards, rather than you just “one-offing” each account, and perhaps only being able to settle on 6 and 12 month hardship plans which can backfire on your budget when the payment and interest rate reduction expires.
Talking with a nonprofit credit counselor is free, and worth the information you will get, even if you do not go that route. You can speak with one today at 888-317-8770.
Settling Credit Card Debt with Chase or a Debt Collector
You mention you were thinking of settling your Chase credit card. What was your plan for doing so? What is the balance of the account now? How much money have you saved and what amount can you add over the next few months? Do you have additional credit card accounts that you are late with?
How much money you need to be prepared with will change depending on different factors.
If you took the money you would have paid in the lower monthly payment hardship plan and saved it up for 6, 12, or 18 months, how much would you have?
This is how many people settle their credit cards. By saving up money over a period of months. If you miss the opportunity to settle with Chase directly, after 6 months of non payment you typically will be able to settle the account with a collection agency.
Chase and different debt collectors.
In order to maximize your percentage savings in settlement and mitigate the risk Chase places the account for aggressive collection action, there are some things you need to be doing and things to avoid doing. If raising the money to settle with Chase in the first 6 months of late payments is not an option, there are different details to learn in order to be successful with your Chase credit card settlement.
Chase will typically charge off an unsecured debt, such as a credit card, personal, or business loan, after 120 or 180 days of nonpayment. Once charged off, Chase could send your account to a typical collection agency, or to a collection law firm.
While Chase has sold unpaid accounts to debt buyers historically speaking, they stopped doing that in 2013.
I consider it an imperative to watch this updated video of mine that covers how much has changed when settling with Chase bank.
You are far better off settling with Chase or a collection agency for the bank. The worst settlements tend to come from attorneys collecting for Chase. This is what I mainly want to help people avoid.
I would encourage you to schedule a consult with me directly, you can call me at 800-939-8357 and press option 2, or you can submit a consult request. I will review your projected cash flow and help you better identify how and when to settle with Chase successfully.
Anyone reading with questions or concerns about Chase credit card hardship payment plans, or about settling Chase credit card debt instead, is welcome to post questions in the comments below for feedback.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
Hi Mike,
Im trying to settle debt with chase bank and I can offer them a settlement of %30 only but they dont want..Supervisor said that is a rule they can do minimum only %50 ,I was very frustrated its my first time and very hard time. I am happy I searched and find your website with this. I cant afford %50 and I dont know what to do. I thinking about bankruptcy or collection but I have mortgage. I just herd from friends that the collection agency will sell my house . My question is this is true they can sell my house to pay debt? and how I can achieve from chase %30 settle not %50 . Thank you so much.
When did you make your last Chase payment?
What is the balance owed on the card?
It is unlikely in the extreme that your house would be sold to pay a credit card collection debt (involuntary foreclosure).
I will have more feedback about how to possibly get your Chase account settled for a better deal when you post your reply to my questions.
Hi Mike,
I’ve spoken with you a few times now and you’ve been very helpful in getting me through these rough times. I’ve now settled 3 cards before charge off and the last one is Chase. It’s set to charge off on 01/31/2016 and they aren’t offering me a settlement other than bringing the account current. My guess is once it charges off it will go to their internal recovery department. My last offer to them was for 40% and they didn’t even counter it. My question to you is should i just get the account current as to avoid the charge off and possible collection showing up on my credit report? My number one concern now is to repair my credit and allowing this to charge off and a collection showing up concerns me. Or, am I worrying too much about those two items showing up as the damage of the late payments is already there?
Thanks,
Dave
The credit report damage is pretty much done. And I am seeing settlements get done with the first collection agency Chase sends your account to that are often much better than what can be accomplished with Chase directly. I would hold out to settle your Chase account with the debt collector.
It is a bit odd that there is no settlement on the table with Chase this close to charge off. Were there balance transfers of size in the last 12 months? How about cash advances or a large purchase pattern? Check out my video about the challenges account use has on settling with banks.
I looked back 2 years and most of the purchases were gas or groceries. The balance with them is $6,600 the smallest of all my cards and the most difficult by far to deal with. My other balances and settlements were as follows:
Bank of America $19,460 – $4900
Citibank 29,940 – 10,455
Barclay’s 41,970 10,738
The second figure is the settled amount just giving this for the viewers that are wondering what others are settling for.
I will try again on the 29th one last time with them but really wanted to avoid having a charge off and collection on my report.
I would not get hung up on the way Chase shows up on your credit at all. Your credit got clobbered in a short period of time, and in my experience, is going to bounce back the same at this point regardless of whether Chase shows as a charge off. Given the situation I would target the best settlement result.
Hi Mike,
I settled the Chase account today, the last day before charge off for 50%. Finally the process is over and you were very helpful throughout and I’m grateful. This site and the knowledge I gained from it kept me from bankruptcy and using a debt settlement company.
Dave
Nicely done Dave! How would you rank your creditors for ease and simplicity to work with during the negotiations? If you don’t mind, read that article and let me know.
Bank of America and Barclay’s were extremely easy to deal with. By month 4 of being late they offered settlements of 40% and when I said I couldn’t come up with that much they said to try again after the next statement closing date. Those two account were settled for 25% and pretty much stress free. Citibank offered 40% at 90 days late then sent it immediately to collections which took me by surprise. It took two phone calls with UCB and I settled for 35%. Chase as you know was a struggle the whole way. They never even offered anything until the last day before charge off and that was for 50%. I probably would have done better with a debt collector but really didn’t want the charge off or collections on my report.
I was current on all of my account through June of 2015 and never made a late payment in my life. I burnt through all of my savings to keep everything current and when that was gone panic set in. To anyone out there reading this don’t believe everything you hear from attorneys about bankruptcy or debt relief agencies as there main objective is to make you a client for a substantial fee. Had I listened to the attorney I was dealing with I would have filed a Chapter 13 and had 5 years of frustration. She immediately discounted debt negotiation and settlement as I’d be responsible for paying taxes on the discharged amount which of course is true. However, she didn’t make mention that if you’re still insolvent there wouldn’t be any taxes. The debt relief agencies didn’t say I’d most likely be sued or have my wages garnished. The point of my rambling is due some research before you make a decision. Had I not of found this site I probably would have ended up in Chapter 13 paying back thousands more than I did.
Michael, not only did you and this site hep me through the most stressful time in my life, you helped me make life better for myself and my children and for that I thank you.
Lastly, if debt settlement is your option I talked to many and my choice would be through Michael’s network if you go that route.
Hi Michael,
My Chase account was charged off on 12/31/2015. I received my first letter from Nationwide asking to dispute or not dispute the debt that includes the entire balance of $21k. I’m assuming that I should respond to verify the debt first. Any other suggestions in how to deal with Nationwide would be helpful. Thank you.
James
What is your ultimate goal for your Chase account? Knowing that will help me answer your question about what to send (or not send) to Nationwide Credit and Collection.
I would like to settle the account, however I do not have the 30% right now. Before it was charged off, Chase would not go below 60%. In addition to Chase, I also have 3k with Bank of America that will charge off on March 1, and Capitalone 9k charge off on March 20. I need more time and only have 5k right now saved up. I’m still working on CapitalOne and BAC to see if they will settle for less. I told them my hardship before, but I have not brought up anything about settlement since I’m waiting for 150+ days to bring it up which will be in February. From what I read, I should probably take care of Capitalone first. I hope Nationwide is easy to deal with.
At what rate are you able to save up money to settle your debts? In other words, how much money will you have added to the 5k you have now by March 20th?
You do not need to send a validation or dispute letter to Nationwide. It would not serve a purpose, and could complicate things later (though not in the way it can with some banks since Chase is not a risk to sue you currently). But you could end up kicking the account out from Nationwide early, which I would not if I were in your situation?
I agree with not sending a validation letter.
At this time, I’m only able to save $600 a month. I’ll only have $6200 by March 20.
Do I continue to ignore calls and only answer when I’m ready to settle? But if I ignore them for a long time, they might call my family. I’m just trying to find the right balance.
I would pick up one call and let them know you are simply unable to pay, and are not sure when or if you will be able to. You are working on some things that could improve your situation and will be back in touch when something shakes loose for you.
Debt collectors calling your family, friends, and neighbors is done for location purposes. They will have no reason to do that if they already know how to locate you. Be sure to confirm your current mailing address and phone number with them. I would then reach back out to them when you are ready to settle for between 25 and 40 percent.
If Nationwide credit and collection no longer has your account when you call you can call Chase directly and they will tell you who they placed your account with after that.
It all makes sense and will do that. Thank you!
Just updating you on this. BAC settled for 45% and I took it. Chase was charged off to Nationwide – they offered 30% from 21k, but don’t have the money because of Capitalone. Capitalone will charge off in a few weeks. They would not budge. They said they will transfer to their internal recovery department after chargeoff and they may be able to work with me then. I will wait for them. I do have another issue though with US Bank private student loans. I owe 26k and I cannot afford the monthly and have asked for a foreberance last year for 2 months. I was late a few times. They don’t qualify for IBR or any other options.
Give me a call to talk about your student loan options if you like. You can reach me at 800-939-8357, option 2 rings to me.
How much are you prepared to pay Capital One to settle? What kind of cash flow will you have after that, or can you pull together in the next30 to 60 days?
You may be able to get a decent term settlement out of Nationwide on your Chase account.
I will call you sometime about the student loan.
I have half for Capitalone now.
Nationwide offered $6400, but I don’t have it. I told them $3500. They said no. So I’m just waiting if they will send another letter. They only had the account since earlier this year in January.
Thanks!
You will not get Nationwide to go much lower, if at all, on the Chase account. But you could potentially get them to approve the amount paid over several months.
Capital One is the bank at most risk to sue, so they would be my priority to settle first over Chase too.
There are options for settling private student loans that are often worth talking about.
HI Michael
I have about $30,000 debts across 4 chase accounts, including $9,000 transfer checks I recently took out because I am unemployed now. I am unable to make monthly minum payments anymore. Will they likely to sue me because of these transfer checks? I am considering stop payment now and getting debt settlement with them following your 150-180 day timeline.
Thank you.
Call me so I can dig deeper into the account usage issue Simon. You may be just fine, or at least good to go on some accounts. I can be reached at 800-939-8357, option 2. If you get my voice mail (I am on the phone a lot), be sure to leave a message and I will return the call.
About 7 years ago we had to settle our credit card debt with Chase due to circumstances beyond our control. My question is this: Will Chase ever offer credit to us again if we were to apply now that our credit has improved greatly?
Whether not a bank will approve new credit and financing when you settled with them in the past is usually a case by case scenario. I have seen Chase do mortgages and refinancing with people who settle credit cards with them in the past.
What type of credit are you interested in? What is it that Chase is offering that is so competitive?
Hey Michael,
Thank you for your informative site. Quick question,
I have a 14k debt with one chase card and nothing else. All my other credit cards (2) are zero balance. They have offered me 40% settlement and also a 0% interest debt liquidation program. I’m confident I can get them to 30% closer to charge off time…but I’m reluctant….because I want to buy a home next year…..and I think my credit will be damaged even more.
My credit is damaged right now…because of the 4 months late reporting….but if i do the debt liquidation….they will ‘re-age’ it after 3 months of successful payments….
What do you think is a better route in my case? Debt Liquidation or Settlement?
You can often weather the credit damage that would result from settling your single collection account with Chase in a years time. And just because Chase will re-age your account, the 4 months of nonpayment do not go away.
If it were me, and depending on some other factors (savings for a down payment on the home a year from now, FHA loans, ability to pay rules), I would go with negotiating the best settlement result with Chase. If you need 30% out of Chase in order to make the deal work, you should know you may have to get that with a third party collection agency just after charge off (I am seeing that more and more).
Hello Michael,
I just wanted to share with some of your readers that I have had some success with Nationwide Credit on settling $10,400 and change Chase account for a whopping $1040.00
When this account first got charged off it went to ARS. They wouldn’t play ball so neither would I. I vaguely remember getting a $7000 settlement offer which I balked at. Told them I will continue to work with serious people who are will to actually help. Months went by then nothing. Finally heard from Nationwide; First letter was $3500 offer which I wanted to take badly but didn’t have the funds. I let it slip by without talking to them and they finally came back with a $1040. offer which they also offered to let me break the payments down to 4 months. December 23rd will be my last payment to them.
Regards,
Jim N
Forgot to mention it took me 2+ years to get to this point. So hang in there folks…
Michael, I am unemployed and owe Chase $5000 down from $8000 this past summer when I had work.. I missed payment twice in the last 5 months, the first they forgave after I agreed to pay. The second missed payment was this week. Both times I spoke with their settlement dept and was offered nothing, except to continue to make the minimum monthly payment. With no income, they can’t offer me a restructured monthly plan either. So, with family help, I really want to negotiate a fair settlement (20-30%) and move on.
(I owe Citi $6400, which I am seeking settlement as well. Bank of America I owe $3700, on zero percent interest till fall 2016, so I’m not concerned with that one yet.)
Bankruptcy is not an option for my credit card debt because I have a non qualified annuity the courts can go after. My only other debt is a car lease.
Michael, going forward, what can you recommend I do with Chase?
You are way to early to discuss settlement with Chase. I highly recommend you start reading my series about settling debts with your original creditors.
Once you read understand how debt negotiation in the first stage of collection works, be sure to read the last several reports where I cover key things to prepare for and ways debt settlement can impact you.
Everything you review will apply to early efforts to settle with virtually all of your credit cards.
Hi Mike,
I’ve spoke with you a few times if the name rings a bell. I spoke with Chase today and they weren’t willing to offer anything except full payment and I’m 100 days late. They refused to even talk to me about it until I gave them the name of a debt counseling agency I spoke to in the past. Once I gave them that info she asked a bunch of questions and I offered $1600 for a $6400 card. What do you think will happen next?
Thanks,
Dave
Not much is going to happen next if you are only 100 days late. You are way to early to be talking about settling with Chase. There are some banks where you can have a productive settlement dialogue this early, but Chase is not one of them at the time I am commenting. You should reach back to them in roughly 50 to 60 days and start that discussion again.
I am not seeing 25% settlements when negotiating with Chase. Unless their is a trend change, I do not think there is a realistic shot of them approving that. You have a better chance of getting that low a settlement on a Chase credit card when you are dealing with a contingency collection agency later on (after you are late more than 180 to 210 days).
The reaction they had when demanding to know the debt counseling agency you consulted with is odd. Did you try and qualify for debt consolidation through a non profit counseling agency in the recent past? Did you hire a debt settlement firm? Were they playing off of something you said?
They said it was their policy not to talk about settlement or hardships unless I’d spoken with a counseling agency first.
That’s different, but likely due to how early you are in the process. I too think most folks with a predictable and consistent income should start their debt relief due diligence by talking with a non profit credit counseling agency too (if accounts have not charged off yet).
Hi Michael,
I have a Chase credit card with $4500 balance. I have read a few of your articles and followed the advice to wait for 150+ days out in order for a settlement. I’m currently at 176 days late.
The debt has been assigned to Allied Interstate to collect for the last few months.
I have brought up settlement with them (@150 days late), and the lowest offer is at 70% which they say will last until Charge off date. My ideal settlement would be 30 – 40% of the debt and this is an amount that I can pay within 90 days– split into 3 payments. I asked for 30% and was turned down.
One thing that was mentioned on the call which is confusing is it seems that the Charge Off date is not 180 days but 210 days. They have acknowledge the days late is the same number as I have but charge off date is set for Nov 30 instead of Oct 30.
Do you have any advice for getting them to settle for lower settlement agreement at this point?
And should I be concerned that charge off date is more than the standard 180 days out according to Allied.Interstate?
I cover how some accounts can appear to charge off at 210 days instead of 180 in other parts of the site. I believe the 30 day anomaly has to do with the interpretation of OCC regulatory guidance called 7 zero billing cycles. I would not be concerned about this other than from a timing perspective.
As far as targeting the settlement amount you can afford, it is what it is with Allied Interstate. They may soften up prior to November 30th, but if they do not, Chase will likely place the account with a different debt collector (either just after charge off, or not too long after), and that can lead to your ability to negotiate the settlement amount you need.
There are instances where it can help to have a pro do the negotiations. If you want to learn more about that you can call me at 800-939-8357, option 2 rings to me.
Do you know how long Allied Interstate has had your Chase debt?
This makes sense about the Charge off date.
Also, if an agreement is not reached before charge off– will that impact my ability to have the debt shown as “Paid in Full/Paid as Agreed” on my credit report?
And the first notification from Allied that I received was end of June ’15.
There would be no paid in full or paid as agreed. You will typically see paid for less and a zero balance owed, and that is really all you need. There is no reason to get hung up on paid in full language.
With Chase having the account with Allied that long, I think your account is going to be replaced at charge off, which is fine, and likely when you will be able to hit your goals.
I have a chase credit card with a 10,000 balance — it has been sent to Nationwide Credit Inc. I have been trying to make payment arrangements- and they keep telling me that I have to pay the entire balance with 3500 down and 900 dollars a month or a one time settlement of 7200. What can I do to get a more reasonable payment plan-what is the best I can hope for. Thanks for your help.
I am not sure what you have already discussed with Nationwide, or how collection worthy they view you, but lump sum settlement offers are often much better than 70 percent on Chase accounts. There are reasons why a debt collector will hold out to get you to pay more, but I can talk to you more about that on the phone (I see your contact form in my email box).
Hi Michael,
I am recent graduate with my MFA in fine arts, last spring. During graduate school I went through a divorce and prior to that had been paying my credit card in full each month. I recently relocated to CA and have just started a job that is starting to help me pay my bills. I am only receiving my third check since arriving here and logged onto my accounts yesterday to find that I missed my mark by 3 days and Chase has just sold my debt to the United Corrections Bureau.
I checked my credit report and my score in extremely low, I have this debt, the balance was at $4985.00 on my credit card, as well as having $60,000.00 in student loan debt from undergrad and grad school. I just found your website last night and have been reading through the stories about settling after being charged off. I just got off the phone with Chase and before I called the United Collections Bureau I wondered if you have any advice for me about what to say when talking to them?
Having not been in this situation before I don’t have saved money right now to do a lump sum to give them right now. I don’t want them to call my work and begin harassing me there at my new job, as I have read about having happened to others before. Do I call today as soon as I just found out and tell them I cannot pay a sum but try and work out terms for repayment or should I try and ignore calls until I have a lump sum?
Please help, I just want to get back on my feet after so many changes the past two years.
How long will it take you to save up, say 30 percent of the balance United Collection Bureau? The answer would help me answer your primary question.
Hi Mike,
I am currently paying $1460/month on three credit cards in a debt management program. The $1460 pays monthly payments for:
Chase: $27,000
Chase: $8.950
BoA: $27,000
GE Capital: $6,000
I am so tight on my budget that I am considering just stopping the payments altogether in the DMP (where my rates are around 2-3%) so I can save up money and settle in 4-6 months for about 40% (~33k).
We make around $160k/year so I can save the money up pretty quickly. We already have cars and a house, so I’m not really worried about the adverse affect on our credit score since we won’t really need any credit ever if I can get this $82k in debt off my back.
What are our thoughts? What might be a good strategy?
Give me a call for consult Barry. There are benefits and drawbacks to settling your debts versus the credit counseling approach you are on right now. You can reach me at 800-939-8357, choose option 2. You can also fill out the short “Talk with Michael” form in the right side bar nearer the top of this page. Those all come directly to me.
Hello Mike,
I am in the process of negotiating with MCM. They represent Midland Funding. Their original offer at 40% discount. I would like them to go lower. I did talk to MCM and said that I am not even close to where they want me to be, but I am doing my best do have funds available and settle. In return they offered slightly lower % but wanted me to send symbolic amount(good faith). Should I send money order$25 like they ask or rather not because it will extend statues of limitation time? I told them that I have currently 20% available to settle.
I would not send any money unless I had an agreement in place if it were me. That could be a settlement for less, or a payment plan.
20% is not all that realistic a settlement target with MCM. I have seen those deals get done in the past when the hardship situation calls for it, but not much of that recently. You may need to save up more before you are able to settle this one.
Hi Mike
I have pretty much reached the end game with Chase, as my cc account charges off August 31.
CC Debt: $17k. Chase offer to settle: $6,800.
Problem is they will not send a settlement letter until AFTER they receive the $6,800. I had reservations about this and told them so. They said that was their policy, however as soon as they receive the 6,800 they would send the account settled letter out to me.
I told them that I need something in writing ahead of sending them the check. No dice!
Where do I go from here?
An alternative to getting the settlement letter prior to making the payment to Chase would be:
1. Record the call with the Chase rep where you cover all the details about the deal you negotiated. They do send the letter out, but that recording will protect you if something goes wrong. You can hold onto the recording after you get the letter. Tell the Chase collection agent that you are recording and why.
2. Set the payment date in their system out far enough for the letter to be received before the settlement payment draft (if making an auto draft). 10 days will often work.
If it were me, I would both record the negotiation call with Chase and set the payment date out.
Hi Michael,
I am 60 days past due with Chase. I have been talking to the same customer representative who is handling my account. She said after 90 days, their in-house General Collections department will be taking over. When I spoke to her, Chase can only offer 60% from 20k which I do not have that kind of money. I understand that timing is important and around 150 days or right before charge off is good to wait. I can only save about 30% by then. If they keep calling me before then, I am not sure what to say. Do I keep bringing up what settlement can afford? Or do I wait for an offer in the mail if I do not answer my phone? Or do I call them once a month to ask if I have not heard of any offers?
Thank you!
I encourage people to stay in touch with your bank about once a month. You do not have to pick up every one of the collection calls you get from Chase. In fact, you do not have to pick up their calls at all. I prefer to make the outgoing call. The purpose for the next 2 to 3 months is to let them know you are still unable to pay, but working on gathering resources. That is all there is to say until you cross over the 5 month late mark. It is then that you can bring up settlement for the amounts you can afford, and have a shot at getting Chase to agree to accept it.
You may hear a Chase collections agent bring up settling, and it is not unheard of to get a great offer approved prior to crossing over the 150 day mark. If that happens, and you can pay, it is nice to get these things done earlier than expected.
If you have any difficulty, or there is any curve ball thrown your way, give me a call at 800-939-8357, choose option 2.
Thank you, Michael.
Does the 150-180 days waiting period also work for Capitalone, Bank of America, and Discover? Or are they more aggressive? If I can settle within this window, are they less likely to sue especially if I keep in touch with them once a month? The balances in those cards are 9k and less. Thanks again.
Call me for a consult Joseph. The more accounts you have, the more strategy will become a factor.
If you have the ability to fund all settlements with Chase, and the other banks you list, prior to charge off, than yes, settling inside that 150 to 180 day window can often be ideal.
But if some are going to have to wait to be settled after 6 months of nonpayment, Chase may be one that you put off.
You can reach me at 800-939-8357, choose option 2.
February – March 2016 are 150-180 days for the other accounts. I will be able to have 50% for Capitalone, 30% for Bank of America, and 40% for Discover. If these accounts are less than a year old, you mentioned in another page, they may not settle in a hurry and that I would need to wait longer to be in second or third stage. It just makes me worried.
I also just found this page you have after I posted the earlier comment today: https://consumerrecoverynetwork.com/how-call-bank-negotiate-credit-card-yourself/
Very helpful. Thanks again!
Settling in the first stage of collection, and directly with your creditors, is often ideal. The strategy and priority you give each account can change from one file to the next.
I can offer more details with the consult, but you can post your situation and cash flow in more detail when you are 5 months late with Chase and the other accounts. My feedback will be more specific.
I am still in that waiting period. I have a quick question. Can the original credit contact my work and family before charge off? You mentioned that I should call them once a month so that I don’t ignore them and they know that I am in contact with them. I’m only a few days late with Discover and have had maybe 8 missed calls of the same number without a voicemail. I’m just wondering at what point or when would they call my work or family. Is it a good idea just to have an alternative number if the calls are becoming annoying. Thanks.
Hi Michael,
Thanks for your help.
My credit report shows that my (huge) debt was never sold to a collection agency after the original write off. The original write off took place in March 2014, and then continued to show on my report until February 2015. They haven’t reported anything since February 2015 – not charge off, collections, nothing.. just a blank space on all my reports. It shows that the account was “Account closed at credit grantor’s request,” and that the original 5 figure sum was written off. None of my three credit reports show that this debt was sold.
I came across this article:
https://www.bankrate.com/financing/credit-cards/chase-fined-216m-over-debt-collection/
“The bank also must cease collecting on 528,000 accounts that were sent to collections litigation between Jan. 1, 2009, and June 30, 2014.”
They never went after me in court, as far as I know. But I was charged off and had been called and called during the later part of that time.
Which discusses how Chase isn’t pursuing debts from a certain time period. Mine was originally charged off in that time period.
I find it hard to believe, but does it sound like I am in the clear from being sued? I don’t see any evidence to the contrary, but this is all new to me. It hasn’t been reported on my credit report since Feb and they never sent it to collections. Am I the luckiest guy alive?
You could very well be part of the Chase accounts that will likely not be sued for collection.
Do you have any potential credit and financing goals in the next 6 years?
Hi Michael!
I just started looking into credit card lump-sum settlement and was wondering how to go about it. Basically I have 2 credit cards that I need to settle, BofA 15k, and Discover 8k. Never had a late payment. I’m single, and make about 3500 a month before tax. My total monthly bills keep exceeding above my monthly income for the last 2 years or so hence the credit card bills. I have 3k in a BofA checking just fyi. Right now my house is on the market, after the sell I should have about 140k cash. But I will need to use about 100k down payment on another house in a few months. The sole purpose of buying the new house is for better school district for my kid. So that leaves me with about 40k. Would creditors settle knowing that I have 40k? And can I call them offering lump-sum settlement without having missed a payment ever? What is the correct process?
Thanks so much!!
You cannot call banks and get them to settle with you for less than the balances you owe while you are current.
Settling with banks like Chase or Discover will often be best timed for when you are between 150 and 18 days late. I would encourage you start reading my article series starting with the piece about settling with banks prior to charge off.
Because you have other financing goals (new home financing after the current home sells), and would not want late payments to interfere, settling, or falling behind with payments, is not a good idea (unless you have no choice).
I have a 14,500 debt with Chase. It is almost 6 months over due. I spoke with the representative in Feb. and told him I own no assets, have several injuries and no income and am unable to pay it.
I told him I was looking into bankruptcy, but that I would also like to be able to settle if I could find some money. He told me that we could settle, but not to look for anything like 20% etc. He said if I have the name of my attorney I should call him back and let him know. He was very kind – which I appreciated! (and I didn’t start to cry, which was also very nice!!)
I have done nothing else since then. I asked for the phone calls to stop and my mail has been forwarded since December and held, so I haven’t received it yet. (I told him I’d have trouble getting mail – no address!)
Now it is very close to 6 months past due. I have $2,000 which I can use for this. I saw a bankruptcy attorney costs almost that much. My bill is about currently about $14,500. I don’t know if it’s worth it to do bankruptcy for just this one credit card. And it’s harder to have to think of going to court, etc because of my injuries and mobility issues!
I wish in instances such as this, Chase would just settle with someone like me!
Chase will settle the credit card debt with you, but perhaps not for the money you have available.
Bankruptcy is an option right now, and in the future. What amount of money can you come up with if given more time? I see Chase debts settle with debt collectors too, and sometimes for better than what can be negotiated directly with Chase. Can you come up with another one to two thousand dollars given a little time?
Hi Michael, I found your site by trying to see if I could get hardship help with my chase card (4300.00 that is not late)I call the chase proactive solutions and talked with a rep and let her know that we are struggling and that there is a 95% chance my husbands job will be gone come October. And that I was trying to stay in good faith but we have other credit cards (that I’m trying to do the same with) the rep asked a bunch of questions to then tell me that we don’t have enough income to qualify for any of there programs. I know that we got our self into to this mess but I’m trying to fix it, what can I do, you would think I was a prime candidate since I’m trying to do the right thing, please help
Thank you
Rhonda
Before you set yourself up on any of the different payment plans your credit card banks may offer, you may want to consider grouping them all up to consolidate them into one payment.
How many accounts are there, and what do all of them combined add up to?