Can I settle my credit card debt with Navy Federal Credit Union for half?
I have approx $27,000 in unsecured credit card debt with navy federal credit union. I work in real estate and thus have extreme swings. I also have $45,000 in student loans which I have learned are not able to be settled or discharged in bankrutpcy. My question is can I settle my navy federal debt for 50%? I have read the credit union in general and Navy Federal in particular is very difficult to work with. Please advise?
Can i settle debt with navy federal credit union for 50%?
—Michael
Short answer
Yes. A 50 percent target is realistic with Navy Federal depending on the collection stage you are in, and better results are possible. Navy Federal is one of the easier credit unions to work out a settlement with, but credit union settlements carry complications that a national bank does not have.
Key points on this page
- Credit unions are member owned and usually smaller, so they do not approach settlement with the one policy fits all scenarios used by Chase, Bank of America and Citi.
- Many credit unions do not sell debt to debt buyers, and they lean on attorney debt collectors more than collection agencies. That makes a credit union collector more likely to sue.
- Credit unions cross collateralize their loan products. An on time car loan payment can be used to offset a late credit card payment, and a car title may not be released while the card is unresolved.
- Settlement is typically not an option until the card is close to charge off, which for credit cards usually happens at 180 days of missed payments.
- If your budget supports roughly 2 percent of the balance each month, a lower repayment plan, offered direct or through a credit counseling agency, can avoid settlement and its knock on effects entirely.
- If you hold a car loan, mortgage or insurance product with the same credit union, work out the sequence before you start negotiating, because those contracts can block a settlement.
It is true that settling with a credit union is often not the same, nor sometimes as simple, as setting credit card debt with a national bank. I am not sure what you read about Navy Federal Credit Union, but in my experience NFCU is one of the easier credit unions to work out a settlement with.
Settling Credit Cards with a Credit Union
The basics of why credit card debt settlement with a credit union can be different are:
- Credit Unions are member owned.
- Credit Unions are often smaller banks that do not approach settling debt with one policy fits all scenarios in the way that big banks like Chase, Bank of America, and Citi Bank do.
- Many credit unions do not sell off debt to debt buyers.
- Credit Unions often have established relationships with attorney debt collectors and use their services more than debt collection agencies. In other words – collectors for credit union debts are more likely to sue in order to collect.
- Credit Unions cross collateralize the different credit products they offer their members.
There are some more nuanced differences that can impact your ability to settle with a credit union, but the above list is the overall picture.
Debt Settlement with Navy Federal Credit Union
First lets establish whether you have other options than settling your NFCU credit card. I have some questions you, or anyone else dealing with NFCU, can answer with a reply in the comment section below.
How many months’ payments have you missed with Navy Fed?
Settlements on credit cards are typically not an option until you are closer to the card being charged off. Charge off is an accounting principle that credit unions must follow on unpaid loans. With credit cards the charge off most typically occurs when you reach 180 days of missing payments.
Will your budget support your ability to pay NFCU 2% of today’s credit card balance each month moving forward?
Navy Federal, like nearly all credit unions, will participate in lower monthly debt repayment plans. Some of them offer these plans direct to their members, others will only offer these lower payment options through a credit counseling agency. If your account is not yet charge off, and you can afford roughly $540.00 each month (2% of your 27k NFCU balances), you can avoid settlement and the knock on affects all together.
If your budget supports this lower credit card payment, make a free call to a certified credit counselor with established communication with Navy Federal Credit Union and learn more at 888-317-8770.
Do you have other accounts with Navy Federal?
If you have a car loan, mortgage, or insurance products through your credit union, you can face serious obstacles when trying to settle credit card debt for less than the balance owed. I pointed out in item 5 above that credit unions write contracts that cross collateralize their loan products. This essentially means that you’re on time car loan payment can be used to offset your late credit card payment, or perhaps that the car title is not released when it’s paid off because of unresolved credit card debt. There are many ways your other loan contracts with a credit union can impede your settling credit cards with the same bank. How to navigate these concerns, if they apply to you, and still settle the credit card, is likely handled best one on one, rather than trying to apply your strategy openly online.
If settling the credit card debt with NFCU makes more sense than other payment options, or bankruptcy, your target of 50% is a realistic expectation depending on the collection stage you are in. In fact, we have successfully guided our members to NFCU settlements that result in better than 50% savings. In order to provide more feedback and tips, I have some additional questions:
What state do you live in?
When did you last make a credit card payment to Navy Federal?
If you are being contacted by someone other than Navy Federal for collection, who is collecting?
Can you come up with the money to settle with NFCU today, or do you need time? If you need time, how much?
Anyone with questions about handling credit card debts with Navy Federal, or other credit unions, is welcome to post in the comments below for feedback.
If you would like to cover your situation and options on the phone you can reach me at 800-939-8357, choose option 2, or submit my consult request from and we can schedule a good time to connect on the phone by email.
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.
My auto loan with NFCU is now in charge off status, transferred to recovery department. The last statement I received, which was in February, at >150 days past due, showed that my account had past due balance of $1800, and $2100 currently due. The loan balance was $12600. I called and spoke to someone with member services, set up a payment, provided my new mailing address. I was told nothing about my account soon to be charged off at that time. I then began submitting regular payments as I could afford it, over the following 6 months, totaling approximately $2200. The payments were accepted and applied from what I could see on my end over these last 6 months. I never got any statements at the new address. When I reviewed my credit report this week, I saw the auto loan status as charged off, as of 3/31/16. It shows my most recent payment, so I can see they are applying my payments to the balance. The account balance is now listed at $11000.
I am still in possession of the car. The value of the car is probably $2-4K less than what is owed.
I have a significant amount of debt in collections, an eviction collections account, along with a deferred consolidated student loan, all of which began piling up with the past due auto loan when I relocated for a new job in 2015, then subsequently lost it.
I now am unsure what my best options are, and how to approach NFCU about the loan charge off. I’m considering bankruptcy (pending consultation) so I also don’t know how that would affect things.
I would be able to afford to pay about $2k if they would accept it in return for removing the account from collections, since that’s approximately what I believe would’ve been still due based on my normal monthly payment of $330, to bring it “current” so to say. But I don’t know if that’s even something they would consider.
I would not be able to afford paying off the entire debt. Nor do I think that would be in my best interest, all other debts considered.
I am now employed in a stable position with a small bit of savings, so I am hoping that I can prevent any of this from becoming worse.
Finally, do you know if I would be able to communicate with NFCU about this matter by mail or even email? I get incredibly tongue tied when these debt collectors start pressuring me and I would prefer if I had paper documentation of the correspondence. They are so intense! I already feel bad enough.
Thank you so much for your advice.
I would wait until you talk things over with a bankruptcy attorney. If you can do a chapter 7, where you discharge unsecured debts, and can reconfirm secured debts, like your car loan, it may be the best course.
If you cannot qualify for chapter 7, or otherwise want to avoid it, post an outline of your debts (who you owe, and how much), and I can walk you through some options to think about right here in the comments.
Hi Mike. I foreclosed on a NFCU mortgage in 2015. My credit report shows a zero balance with them even though there was a $35,000 deficiency. I never received a 1099-C but it’s still showing zero on my report. I also have a NFCU HELOC which is on credit report and shows a $8,000 balance, no payment since 2015. I also have a NFCU credit card which is on credit report and shows a $4800, no payment since 2015. I will soon call them to attempt settlement on the HELOC and credit card. Can I negotiate that they forgive my mortgage deficiency (assuming they already haven’t) for making payment to settle the other two accounts? Also, is it necessary that it states “paid in full” on my credit report if I settle for less? Also, can I request that they don’t report the cancelled debt on a 1099-C in exchange for settlement payment? Thank you.
You may not need to do anything about the deficiency on the first if it is no recourse. But call in for a consult tomorrow to go over your particulars. You can reach me at 800-939-8357, ext 2, or just fill in the talk to Michael form in the right rail of this page so I can email you in order to set up a time that works for us both to connect on the phone.
Resolving a collection account on your credit report that is this old will cause the zero balance owed reporting. That is all you care about. The paid in full or for less means little once the account gets charged off.
You cannot offer NFCU money and request that they not follow through with their tax reporting obligation. They are typically not going to go for that.
I know that Michigan is a recourse state but don’t know if my mortgage is non-recourse. It was conventional. Fannie Mae, both 1st mortgage and HELOC serviced by NFCU.
Okay, thanks. I will have some additional questions when we speak. Today is a travel day, but I will be back in the office tomorrow.
Hello,
I settled a credit card and loan with NFCU last fall. I have a question about how it should be reported. The loan is noted as being paid, while the amount written off on the credit card is noted as being past due. Is this something I can challenge with the credit reporting agencies?
After settlement the credit report will typically show a paid collection for less than the balance owed. What is the amount Navy Federal is showing as due as of today on your credit reports? Are all 3 credit reports showing the same thing?
I believe so. I wasn’t able to get TransUnion. They are saying that it is 19K past due.
I just double-checked on myFico and all three are reporting that I have 19K past due. I also noticed they list the card as open and not closed while in the remarks it says a variation of “account closed at grantor’s request”
And, oddly, they reported the payments late for the 4 months prior to the month we settled. The month we settled is reported as being paid on time. time. Then, for the next two months it is reported as late again and then no more reports.
Check out this article about filing credit report disputes to get this corrected. Let me know how it goes.
I’m a veteran with a service connected disability. My disability worsened. Because of this, I could not keep a stable job. I, then, petitioned for a higher disability rating for a larger compensation with the VA. I asked NFCU to wait for payment until VA decided whether to increase my benefits–suspend my account. Still, they piled fees and sent my account to collections, which consisted of 2 credit cards totaling about 20k and locked account. I told collections several times my situation. They called several times a day, so I told them to stop calling. NFCU started using my small disability compensation payment to pay the credit cards. I had to switch banks. Anyway, now, VA approved disability increase. However, my cards were charged off. This played out over the course of about 2 years. Do you think they would reinstate them because of my situation, and If I have to settle, could I still bank with them? In any case, I’m wanting them to delete the charge offs from my credit reports or sue them for not doing so.
And If I do get them reinstated, I want the credit cards to be at the very balance that it was before the first late charges.
It is just not going to happen.
Also, I have a legitimate claim and it could happen. “Navy” federal are supposed to be representatives for service men and women. With their name, they assume responsibility in helping those who served with types of special needs that they may have. What other special need is greater than supporting a naval service men or women who have been disabled because of combat and cannot work? If they are not willing to help vets and active service men and women through this period of time after a disability has ensued or gotten worse, then they should not hold that name. I will sue, and I will win if they do not take it off, but I’m willing to negotiate.
NFCU followed their normal procedures for how they treat an unpaid account. You will not be able to get charged off accounts reinstated. You will be wasting time and money suing to get legitimately unpaid debts removed from your credit reports. Settling for a reduced lumps sum amount will get your credit reports to show paid collections which is all you need to reach other financial goals.
Can you pull together 30-ish percent of the balances?
I apologize, but, nope, I cannot settle for that. I need it off my credit report. What would be the % to pay to get it off now?
It would be unusual for them to remove it. There is no legal requirement to do it, and banks tend to focus on meeting their legal requirements, not exceed them. Will they make an exception for you? I cannot say, but it is not something to count on. Most financial transactions we want to go through will be able to proceed with a paid collection on our credit reports.
I have done settlements as low as 25% with NFCU. I often caution against telegraphing a credit goal or need for something to be removed. Debt collectors will tee off on that as a means to try and collect more from people.
Hello Mr. Bovee
I have a credit card debt of 45k, 2 personal loans with NFCU that total 44.5K, 1 car loan with NFCU for 26k and another personal loan with USAA in the amount of 43k. everything is current except for the credit card which is 3 months past due. These monthly payments have consumed all of my income and i can no longer live in a comfortable manner. how do i go about getting my creditors to settle for 30-40% of unsecured debt? You’re insight is appreciated!
There are some benefits to your accounts being with Navy Fed and USAA, but also some draw backs. Your car loan can present an issue, as can other accounts you may have with the banks.
I highly recommend calling in for a consult before you go any further. You can reach me at 800-9398357, ext 2, or fill int he talk to Michael form in the right column of this page. Those submissions all come direct to me. I can email you to set up a time to connect on the phone.
Hi Mr Bovee, I stumbled onto this thread and was wondering if I could ask a question about NFCU please? It involves a 2nd mortgage that I have with them that I defaulted on 4 years ago?
They did a charge off on it and moved it to their collections department. I reached out to them about 3 years ago (after securing a loan mod on my 1st), and was successful in getting a loan mod with them as well. Since then, I’ve been paying the payments on the agreed terms perfectly. My current balance is about 24K. They did give me a 50% reduction in principle and a 50% reduction on the monthly payment, with 0% interest until the loan is paid in full. They also waived all of the back fees etc. I did get this in writing on a form with their letterhead, signed by the collection agent that I was working with. My question is this: They told me that they won’t update my credit report until this loan is paid in full and at that time they will 1099 me for the forgiven amount. Does this all sound legit? I’m keeping very detailed records on all the email exchanges, and banking drafts for the monthly payments.
Also, I want to pay this thing off really soon, but I’m afraid to send them extra payments. When I secure the amount to pay it off, would you recommend me getting an attorney to ensure things go smoothly. Obviously, I want the lien removed from the property. Thank you kindly, Charles.
Your agreement to settle the second mortgage with NFCU sounds good. It is normal to not update your credit reports until resolved on charge off accounts. And the 1099c reporting to the IRS is also something that does not occur until the last payment on a settlement (when the remaining is then cancelled by NFCU).
I would not personally use an attorney to complete this. You have the agreement to pay half in writing, and you have access to your bank account to show proof of timely payments (as long as all payments to NFCU were made on time). I would move forward with payoff in that case, and if things go south, only then consult with an experienced foreclosure or collection defense attorney.
Post an update with how you progress, or if anything goes wonky and I can help you.
Settling credit card debt with navy federal
Did you have questions or concerns about your situation Navy Federal?
Hi Michael,
I have filed a Chapter 7 bankruptcy with majority of the debt being NFCU. I have 1 car loan, 3 personal loans, and a line of credit with NFCU. Would it be possible to do a settlement for the car loan with NFCU? If so do you think they would take the Kelly Blue Book value of $7,500.00 regarding a car loan that was/is $25,000.00 at the time of bankruptcy? Thanks!
If you want to keep a car you are still paying on during a chapter 7 bankruptcy you typically have to reconfirm the loan and pay on it like normal.
If you are talking about discharging all of the unsecured Navy Federal debts, and then after all that dust settles, circling back and getting NFCU to accept $7500 on a $25,000 loan – and you get the title – no, I see no real chance of that. They will move to repossess more than likely, and the deficiency balance after the car is auctioned would not have been in your bankruptcy.
hi Michael,
will nfcu settle my credit card even though I am on time paying it? I can feel I am heading down a dark path and will hit rock bottom if they wont settle it for me. please advise what I should do.
NFCU does settle with their members, but not when you are current with payments. Even if they would, it would not be for the type of savings you will see later.
Why the hurry?
Do you have other loans and accounts with NFCU?
I have checking + saving and 2 credit cards with NFCU, both credit cards equaling to 18k. I am not in a hurry but I do want to just pay it and get it over with. It’s been 2 years and I feel like I have not made a dent in my balance. I am over paying more than the min but more than half of it is going towards the interest charges. I’ve asked if they can lower my interest rate but they recently told me they can not do that for me at this moment. With rent, car insurance raising every year I just find it harder and harder for me to keep going. I have recently taken up on a second job to help pay this off, but the pays sucks and feels like I am working just for gas money.
‘Even if they would, it would not be for the type of savings you will see later.” <— what do you mean it would not be the type of savings I will see later? please elaborate if it's a bad route to take. I want to be in good relationship with NFCU still… I mean if I have to keep going at it slow like this then I will… I just need the best advice you can give me to be on the correct path in financial. thanks Michael.
Call me to go over some more details over the phone Pam. You can reach me at 800-939-8357, select option 2 to ring my phone. You can also reply to the comment notification email you get from the site with the number and times that are good to reach you. Those emails come to me.
I usually target settlements with NFCU credit cards at 40%, but you often want to go about that a specific way.
Hello.. I have a closed credit card account with $1300.00 on it, also a personal loan for 13k. It has come to the point that I cannot afford it anymore. I don’t have any other accounts with them and don’t desire to do business with them anymore. I recently signed up with Freedom Debt relief, but I feel like they really aren’t doing much but saving my own money for a settlement. What should I do? The payments are over 180 days late.
Can you come up with 5k right away in order to settle this much more quickly than Freedom Debt Relief often advertises?
SIr, I Have $8500 in Navy Federal Credit Card Debt, and a Consolidation Loan at $6000. I have been paying on these for over 5 years, and I dont think I can afford it anymore. I have paid enough in interest to pay back the loan I feel. Do you have any recommendations? Is it possible to settle? I have not missed a payment and Im up to date with everything, Thank You
Do you have other financial products with Navy Federal other than the credit card and personal loan? If so, what are those accounts related to?
Do you have other credit cards and unsecured loans besides these two? If so, what are the balances and who are the lenders?
No Sir that is it, I have no other debt with navy federal, or anyone else for that.
Okay, thanks. With just the Navy Federal accounts I would indeed focus on settling those accounts if you can no longer afford to meet the minimums.
Assume for a moment that you could settle both accounts with NFCU for 6k (perhaps a little under that). That is the amount of money you may need to accumulate over time, or quickly (borrowing from family or friends for example), in order to fund settlements negotiated with NFCU, or with debt collectors.
Your credit is going to take a hit until the settlements are out of the way.
Would I Need to let it go into collections before I try to settle?
Not necessarily, but it can help in some instances. Even if you negotiate the deal directly with Navy Federal it would not likely happen until you are 5 months or more late.
Have debt with Navy Federal. I reside in Georgia.
Lost my job in 2013 and my once stellar credit was ruined. The loans and credit cards were charged off and they were able to get a judgement. I thought when the papers came that they would send a court date, I really only had so many days to respond. I could kick myself.
A GA attorney put a levy on my bank account for NFCU. It was released after I paid an attorney here in GA $1500 and agreed verbally to pay $200 a month. It almost sounds as if the attorney owns the debt and will settle on life time payments. As a result I no longer have a bank account in my name.
The problem with $200 a month is that I owe 55k. Yes, $55,000, part credit card and unsecured loan debt. It would take 22+ years to pay off. I can’t even remotely believe that NFCU agreed to a 22 year pay off.
A BK13 t would be payed off in 3-5 years and off my credit in 10 years. A BK7 that I qualify because of my income would be erased from my credit in 10 years. Either way a BK7 or BK13 would be off my credit in 10 years and it makes no sense for me to pay anything for 22 years, which is 12 years past when a BK would be erased.
I am trying to do the right thing and pay them back atleast a portion of the debt. Nobody should be punished for that long for a mistake. They get nothing if I file a BK7, but the car. I will find a used car somewhere if I cant trade out of this one.
Not sure if I should just sign the paper from the attorney and buy more time until the car loan is paid off. Would they even give me the title if I am in a payment arrangement? Is it better to trade out of the vehicle and would they have to give title to new dealer if that happens? Is it better to trade out of vehicle?
I own a house and the payments are up to date. I own the a vehicle financed through NFCU which I owe about a year worth of payments. I was made aware of the cross collateral recently so my vehicle is at risk if I file a Chapter 7. Though I am considering trading out of the car so that they don’t hold the title anymore. I was initially told that my house and car were safe (however the attorney didn’t think about the cross collateral issue with the car)
Should I call Navy Federal myself and make sure they received the $1500 and attempt to make payment arrangements with them? (the 1st letter the lawyer sent me to sign had no mention of the $1500 he had received in it. I had to ask that he put it in there. He also wants all payments for the next 22+ years to come to him. So not so sure he is on the up and up.)
I offered $1500 a month and $200 a month for 5 years. $200 is my limit because my salary is super low now.
You could be in and out of the chapter 7 for as little as 1500.00. I would encourage you to pursue that. You may be able to confirm the car loan and keep it after the bankruptcy (if you even want to). Talk to an experienced chapter 7 attorney about that. I would encourage you to read this article about how to find the right attorney for you.
Who is the law firm that handled the original suit? Is that the same attorney you are in contact with now?
I signed up with a debt relief program. I got sent a letter the other day from my credit union being summons to court. Ive asked repeatly for paperwork for them to send me so i could give them information on who took over account. I got no letters, no phone calls. I pay for a attorney through the relief program and they are gonna be contacting me So whats my next step? What am i in for with all of this? i have no problem paying them back but i had so much debt i needed it consolidated to 1..
Who is the debt relief company you hired?
Is the named plaintiff in the lawsuit Navy Federal, or another company (NFCU has sold debt in the past)?
What state do you live in?
My son recently died without a will. He has checking, savings acct and a small unsecured signature loan with Navy Federal Credit Union. He was a South Carolina resident. I provided bank with death certificate and a probate court authorization for them to reveal acct balances. They provided “date of death” balances. (7march 2016). They said that * I will transfer funds from his checking account to pay his loan. “. Should this occur or given that is is after his date of death should these moneys remain until probate occurs? I am also aware that at least two payroll checks were deposited after his death. Can these monies also be used to pay any loan/ monies he still owes bank?. Once he’s deceased I thought nothing from his accounts could be disbursed until probate court dictated it.
It is not uncommon for the bank account of someone deceased to still carry out basic functions. I had this happen with my fathers account after he passed. My sister was the executor and she paid some bills off, and made other transactions, from that account. All of this before the probate judge signed off on everything. Are you the executor?
The payroll checks are curious, but could be explained.
It may be that the cross collateral clauses in Navy Federals credit card, loan, and other agreements, allow for them to reach in to checking and affect payments on other accounts, even when deceased.
If it were me I would call Navy Federal and ask about the specific policy they have on this. They should tell you. I would also get a consult with a probate attorney, even if you pay for it. You will be able to wind things down and wrap up your sons affairs with confidence this way.
I am very sorry for your loss.
I would love to keep the small business.
Thank You for everything
Thank You
I can pay the Business Visa behind $238 to get that current would that be ok for the pay off on the business truck for title release right now? Truck is a 2003 loan was $7000 now $1780.
The other accounts Visa, Mastercard, Personal loan, Navcheck add up and might not be worth paying off to get title for truck.
I have a lawyer thinking already BK7.
I have paid off many car, personal, visa, navcheck loans with NFCU many times.
Never late.
Thank you again
Jeff
Okay, thanks. If you are going to file the chapter 7 for your personal debts, and remove any personal liability for business debts, what are your plans for the business? Will it continue to operate?
Given your path to resolving the debts is chapter 7, and your attorney has advised you to pay Navy Fed for the truck loan, I would get that going right away. You may not be filing the paperwork in court right away, but there is often things you can do to prepare.
Curently have the following with NFCU
Navcheck $2000 30 days past due
NREWARDS $12700 30 days past due
PLAT VISA $22,000 30 days past due
Personal Loan $22000 30 days past due
Business Visa $6000 30 days past due
Business Car Loan $1780 Current
If I pay off car now will they send out the title? Lawyer says to pay off now to avoid cross-collateralization.
Thinking on all my options. I paid them of several times and many loans before never been late untill now. Owe many other credit cards and loans outside NFCU as well 30 days past due. Just got hit wih IRS audit $15000 for 2012 2013 and now $22000 student loans due. I have taking all funds to pay off all debts and still owe a lot.
The past due status on several Navy Federal accounts may complicate getting the title released by paying off the loan in full. Do you have any option to bring the business accounts and loans current?
Setting aside the car loan issue, what is your path to resolving your Navy Federal and other debts?
Hey there,
We currently have a CC w/ NFCU for 25K. We are current on payments, the last 4 months have been about a week late (due to pay dates w/ employers changing and being unable to re-arrange when our bills are paid) I am afraid of becoming behind on the actual payment. Our interest rate is 13% and the monthly payment currently is $1075.
We have a CC w/ BOA for 6k and then other smaller loans from Synchrony (care credit, Havertys furniture) for a total 6k as well. We live in SD, own our home and have loans for 3 vehicles. (two of which are w/ NFCU)
The $1075 is seemingly becoming more difficult to pay. We have been offered from multiple companies for debt consolidation and debt settlement from a few. Which have all been fairly tempting, just so we can get the payment reduced. With hope of a new job within the next year, we would like to then come back up to the 1k a month so we can get rid of the debt entirely. Thats the hope at least. Do you have any suggestions? I have called NFCU about a month ago with no help or guidance what so ever. Im assuming thats because we are and have been current on our payments.
Any help from you would be great. I have read through some of the other replies and I appreciate your knowledge and guidance.
Based on the little information I have to go on Crystal, I would suggest you call the hot line 800-939-8357 and press 1 when you hear my recording, so you can connect to a certified counselor, and go through a free session to see if your bills can be consolidated to a lower amount (and single payment). If the exact quote you get is workable with your income and expenses right now, you can use extra money later to pay it off quicker.
That program is not a loan or anything. And it will not harm your credit scores.
If the quote you get is not enough relief, then call the same number and then press 2 to connect to me and then we can talk about what negotiating balances lower will look like for you.
This is a process of elimination I want people who are current with bills, but struggling, to go through in order to determine which direction will work best for them given your current situation and near term goals.
Thank you for so generously answering questions!
I owe NFCU $16,000 on a CC. I have never missed a payment or even been late with one.
I have approximately $20,000 in other unsecured debt (other credit cards) and no secured debt.
I am 60 years old, ill with a heart condition, lost a leg, broke my neck, in a wheelchair and live on Social Security Disability Insurance.
My father-in-law owns this home and I am not on the (paid-off) deed.
My wife is not on any of my accounts nor I on hers.
Frankly I never expected to live this long and figured the debts would charge off upon my passing.
Apparently God, as he so often does, has other plans and I’m still kicking.
Now I find myself unable to continue this level of debt payment.
What should I do?
Contact them? To what end?
Stop paying for 6 months and try for a settlement?
File or bankruptcy?
As I understand it unsecured creditors have a difficult time garnishing SSDI, so one option is to stall and do nothing I suppose.
Any suggestions are greatly appreciated!
Edit to add:
I do have some limited cash on hand, perhaps $3,000 that I could put toward a settlement and could double that if I stop payments for 6 months before trying to settle.
The 6k would help to settle with Navy Federal, but what about the other accounts?
If you cannot continue to make the payment to NFCU and your other credit cards, it is just is what it is at this point. I can help you understand how thing will progress from here if you simply stop paying. You can give me a call at 800-939-8357, option 2 rings to me. I am out of the office tomorrow, but will be in Saturday.
I would highly recommend you speak with an experienced bankruptcy attorney in your area to get a feel for what that would look like. Read this article about looking for the right bankruptcy attorney first.
Michael,
I currently have a credit card with a balance of $21,000, a personal loan of $13,500 and auto loan of $27,000 all of which are with Navy Fed. Due to the child support put in place, I am unable to make even the minimum payment for all 3 loans. What would be the best approach for a debt settlement? I was originally thinking of continually paying the car loan and waiting until I reach a settlement with Navy Fed for the other two loans. Would you advise to do this path? Or would it not matter to be paying the auto loan? Any help would be greatly appreciated.
I moved your comment from the home page to this one that is dedicated to resolving debts with Navy Federal. Read through the main article regarding concerns with settling unsecured debts like credit cards with Navy Fed, while you have secured loans with them.
It would be a good idea for you to call in for consult. I will be able to dig into other details and help you identify a strategy to settle with Navy Federal.
Hello,
I just happen to stumble on this site. I have 2 joint accounts with NFCU. 1 is a credit card with a $9,000 balance which has always been on time. There is a vehicle loan over 6 months past due. The vehicle loan is for $43,000. I received correspondence with gave 4 options with the condition that the account would be settled because the debt has been declared a loss. 1) Pay $19,400 in 30 days. 2) Pay 24 consecutive months of $1,500. 3) Pay minimum payments of $875. 4) Pay 12 consecutive months $2,100. I wanted to seek your advice on what has been offered. It does state to call if I am unable to do any of the above. Thank you.
Call me at 800-939-8357, option 2. I do not charge for the consult. I want to dig into more details about your financial situation, and that of your co-borrower.
I am hit or miss starting today due to family in town and the holidays, but leave a message if I do not pick up and I will know to return the call.