Comments on: Credit Card Settlements – Top 5 Pointers http://settleyourcreditcards.com/blog/?p=29 Credit Card Debt settlement Tue, 19 Jan 2010 19:00:43 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: nick http://settleyourcreditcards.com/blog/?p=29#comment-312 nick Tue, 19 Jan 2010 19:00:43 +0000 http://settleyourcreditcards.com/blog/?p=29#comment-312 I found when I do speak with the collection agencies, it is a waste of time. It is amazing at how little infomation they have - and the information that they do have is incorrect. They seem to have a name, a telephone number, a $ amount (Unverified) and an attitude. - and NO AUTHORITY WHATSOEVER. When I spoke, it just increased the frequency of the calls, with no details or link to previous conversations - most of them made antagonistic statements and false accusations. It was a pointless excercise - on both our parts. Do those tactics actually get them results? I found when I do speak with the collection agencies, it is a waste of time. It is amazing at how little infomation they have – and the information that they do have is incorrect.
They seem to have a name, a telephone number, a $ amount (Unverified) and an attitude. – and NO AUTHORITY WHATSOEVER. When I spoke, it just increased the frequency of the calls, with no details or link to previous conversations – most of them made antagonistic statements and false accusations. It was a pointless excercise – on both our parts.
Do those tactics actually get them results?

]]> By: admin http://settleyourcreditcards.com/blog/?p=29#comment-275 admin Tue, 28 Jul 2009 04:42:10 +0000 http://settleyourcreditcards.com/blog/?p=29#comment-275 Hi Tucker, I did have personal guarantees on all my business lines of credit. It would be difficult for me to assess whether or not my halting payment on those loans, and then settling them, had an effect on my personal credit. When I stopped making payments on five cards, three business, two personal, both my business and personal credit scores adjusted lower. I wouldn't be able to separate the effects. It's a good question, though. I'll look into it and let you know if I find anything. Please do the same. And thanks for ordering the book. Kenny Hi Tucker,
I did have personal guarantees on all my business lines of credit. It would be difficult for me to assess whether or not my halting payment on those loans, and then settling them, had an effect on my personal credit. When I stopped making payments on five cards, three business, two personal, both my business and personal credit scores adjusted lower. I wouldn’t be able to separate the effects. It’s a good question, though. I’ll look into it and let you know if I find anything. Please do the same. And thanks for ordering the book. Kenny

]]> By: netwerks http://settleyourcreditcards.com/blog/?p=29#comment-274 netwerks Tue, 28 Jul 2009 02:21:22 +0000 http://settleyourcreditcards.com/blog/?p=29#comment-274 Kenny- Did you uhave personal guarantees on your business lines of credit? When you stopped paying and eventually settled on your business credit cards/business lines of credit, did they report the engative information on your personal credit? The reason I ask is because i hve several business credit cards yet none of them currently appear on my personal credit report. I am wondering if when I start your process, the results will show up on my personal credit. What's your experience with this? Kenny-

Did you uhave personal guarantees on your business lines of credit?

When you stopped paying and eventually settled on your business credit cards/business lines of credit, did they report the engative information on your personal credit? The reason I ask is because i hve several business credit cards yet none of them currently appear on my personal credit report. I am wondering if when I start your process, the results will show up on my personal credit. What’s your experience with this?

]]> By: admin http://settleyourcreditcards.com/blog/?p=29#comment-261 admin Wed, 20 May 2009 06:37:24 +0000 http://settleyourcreditcards.com/blog/?p=29#comment-261 Hi Steve, First, let me express my regret for your situation. You are not alone. I have so many readers whose stories are so similar to mine and yours. Small business owners and entrepreneurs have been especially hard hit in the recent financial situation because our normal practice of business and cash flow has been interrupted by unexpected changes in the economy. The answer to your question is that, in my personal experience, a bank line of credit was treated no differently than a personal credit card. I had seven different credit accounts at six major US banks, and three of those were business lines of credit. In each case I was able to settle the debt for about 35% of the balance. Thanks for your question, and I wish you the best of success in settling your debt. Kenny Hi Steve,
First, let me express my regret for your situation. You are not alone. I have so many readers whose stories are so similar to mine and yours. Small business owners and entrepreneurs have been especially hard hit in the recent financial situation because our normal practice of business and cash flow has been interrupted by unexpected changes in the economy.

The answer to your question is that, in my personal experience, a bank line of credit was treated no differently than a personal credit card. I had seven different credit accounts at six major US banks, and three of those were business lines of credit. In each case I was able to settle the debt for about 35% of the balance.

Thanks for your question, and I wish you the best of success in settling your debt.

Kenny

]]> By: Steve_I_Am http://settleyourcreditcards.com/blog/?p=29#comment-260 Steve_I_Am Wed, 20 May 2009 05:17:10 +0000 http://settleyourcreditcards.com/blog/?p=29#comment-260 Kenny, I heard you today on a podcast of the Thom Hartmann Show. It was like you were talking directly to me. I am a Personal Injury Attorney, and two years ago I tried a wrongful death case that "needed to be tried." Unfortunately, after deliberating for three days (I obviously gave them something to think about) the Jury found against my client. Not only did I NOT get paid for the 6 years of work I put into the case, but also, (because my client didn't have any money to reimburse me for the costs), I was left "holding the bag" for the $50,000 in costs that I borrowed on a bank line-of-credit to hire the experts, etc., necessary to prosecute the case. I have been making minimum monthly payments on the line-of-credit for the last two years (it was a "signature" loan, so even though it was "firm debt," I was personally liable for it). I have been working my cases, hoping for my "next big verdict" so I could pay off the line-of-credit. Unfortunately, with a $50,000 "mill-stone" hanging around my neck, I was never able to get my little solo practice "healthy" again. I shut down the practice at the beginning of the year, and have been working for a larger firm that can afford to give me a regular pay check. Here is my question: Do you think your "credit card" program will work with a bank line-of-credit? Kenny,

I heard you today on a podcast of the Thom Hartmann Show. It was like you were talking directly to me. I am a Personal Injury Attorney, and two years ago I tried a wrongful death case that “needed to be tried.” Unfortunately, after deliberating for three days (I obviously gave them something to think about) the Jury found against my client. Not only did I NOT get paid for the 6 years of work I put into the case, but also, (because my client didn’t have any money to reimburse me for the costs), I was left “holding the bag” for the $50,000 in costs that I borrowed on a bank line-of-credit to hire the experts, etc., necessary to prosecute the case. I have been making minimum monthly payments on the line-of-credit for the last two years (it was a “signature” loan, so even though it was “firm debt,” I was personally liable for it). I have been working my cases, hoping for my “next big verdict” so I could pay off the line-of-credit. Unfortunately, with a $50,000 “mill-stone” hanging around my neck, I was never able to get my little solo practice “healthy” again. I shut down the practice at the beginning of the year, and have been working for a larger firm that can afford to give me a regular pay check.

Here is my question: Do you think your “credit card” program will work with a bank line-of-credit?

]]> By: admin http://settleyourcreditcards.com/blog/?p=29#comment-252 admin Fri, 03 Apr 2009 17:08:11 +0000 http://settleyourcreditcards.com/blog/?p=29#comment-252 Hi Nick. I'm glad you're finding value in the book. When I was in the process of negotiating with my creditors I choose to speak with them often but not every time they called. I couldn't get through my day if I took every call, but at least once a week or so I would take the call and tell them where I was at. When I had some money to settle with, even though I initially wanted them to talk to my attorney, it seemed they were more willing to negotiate with me directly than with my attorney. I never wanted to "duck" them completely, as I wanted them to know that I was aware of them, facing the issue and working on it, just not yet ready to do anything about it. I also found a lot of self-empowerment in the choice to talk to them. Once I'd discarded any sense of "wrongness" in my debt, when I had nothing to fear from the phone calls and no anxiety around them, talking to them, for me, was a way to express to them that I wasn't emotionally attached and I could participate in the negotiations from a place of strength. All the best, Kenny Hi Nick. I’m glad you’re finding value in the book. When I was in the process of negotiating with my creditors I choose to speak with them often but not every time they called. I couldn’t get through my day if I took every call, but at least once a week or so I would take the call and tell them where I was at. When I had some money to settle with, even though I initially wanted them to talk to my attorney, it seemed they were more willing to negotiate with me directly than with my attorney. I never wanted to “duck” them completely, as I wanted them to know that I was aware of them, facing the issue and working on it, just not yet ready to do anything about it. I also found a lot of self-empowerment in the choice to talk to them. Once I’d discarded any sense of “wrongness” in my debt, when I had nothing to fear from the phone calls and no anxiety around them, talking to them, for me, was a way to express to them that I wasn’t emotionally attached and I could participate in the negotiations from a place of strength. All the best, Kenny

]]> By: nick http://settleyourcreditcards.com/blog/?p=29#comment-251 nick Fri, 03 Apr 2009 04:14:46 +0000 http://settleyourcreditcards.com/blog/?p=29#comment-251 Hi Kenny Great book. Okay - stopped paying - the calls are coming. I am trying to decide if I should "be invisible" and not answer any of the calls or if it is better to speak with them. I do not see the point in speaking with them at this stage or maybe never speaking with them other than in a few months and then only to tell them to call my attorney. As you said - your speaking with them seemed to not be in your best interest. So, is it better to ignore them completely until they can see that no cards / loans are being paid so that they can see the severity of the situation? Hi Kenny

Great book. Okay – stopped paying – the calls are coming. I am trying to decide if I should “be invisible” and not answer any of the calls or if it is better to speak with them. I do not see the point in speaking with them at this stage or maybe never speaking with them other than in a few months and then only to tell them to call my attorney. As you said – your speaking with them seemed to not be in your best interest. So, is it better to ignore them completely until they can see that no cards / loans are being paid so that they can see the severity of the situation?

]]> By: admin http://settleyourcreditcards.com/blog/?p=29#comment-250 admin Mon, 30 Mar 2009 22:07:30 +0000 http://settleyourcreditcards.com/blog/?p=29#comment-250 Hi, Matt. The good news is they are negotiating. I had a similar experience. 85-95% on the early calls, then they dropped to about 65%, 55%, and finally in the 30-35% range. Some of my balances continued to accrue interest and others did not. I was sued by one company, which you read about in The Do-It-Yourself Bailout. I found that the suit was another method the bank used to urge me to settle at a higher amount, in that one case about 44%. In fact, the lawsuit came with several pages to explain the arbitration and mediation process. Also, telling you that you are in "pre-legal" may or may not mean that a lawsuit will come. I had several banks tell me I was in pre-legal and only one actually file a suit. If you are served, you should definitely consult an attorney who specializes in bankruptcy to help you. In the end, the choice of how long you want to wait and where your personal level of acceptable settlement is, is up to you. But it sounds like the process you are experiencing is exactly the same as that I went through and wrote about in The Do-It-Yourself Bailout. Hi, Matt. The good news is they are negotiating. I had a similar experience. 85-95% on the early calls, then they dropped to about 65%, 55%, and finally in the 30-35% range. Some of my balances continued to accrue interest and others did not. I was sued by one company, which you read about in The Do-It-Yourself Bailout. I found that the suit was another method the bank used to urge me to settle at a higher amount, in that one case about 44%. In fact, the lawsuit came with several pages to explain the arbitration and mediation process. Also, telling you that you are in “pre-legal” may or may not mean that a lawsuit will come. I had several banks tell me I was in pre-legal and only one actually file a suit. If you are served, you should definitely consult an attorney who specializes in bankruptcy to help you. In the end, the choice of how long you want to wait and where your personal level of acceptable settlement is, is up to you. But it sounds like the process you are experiencing is exactly the same as that I went through and wrote about in The Do-It-Yourself Bailout.

]]> By: admin http://settleyourcreditcards.com/blog/?p=29#comment-249 admin Mon, 30 Mar 2009 21:59:31 +0000 http://settleyourcreditcards.com/blog/?p=29#comment-249 I wish I could say I knew for certain but this is an area I'm not familiar with, since I am not married and had no experience in joint cardholder situations. However, I would say that simply asking how a credit score could be affected is only one aspect of a much larger financial pictures. Depending on the full scale of your joint and individual assets and debts, credit card debt settlement, even with a reduced credit score, may be more financially beneficial than servicing a large amount of debt when your finances won't allow it, simply to maintain a high credit standing. Either way, though, since you and your husband have a connected financial picture it is a conversation for you to have, and to agree upon, together. I hope that helps. Kenny I wish I could say I knew for certain but this is an area I’m not familiar with, since I am not married and had no experience in joint cardholder situations. However, I would say that simply asking how a credit score could be affected is only one aspect of a much larger financial pictures. Depending on the full scale of your joint and individual assets and debts, credit card debt settlement, even with a reduced credit score, may be more financially beneficial than servicing a large amount of debt when your finances won’t allow it, simply to maintain a high credit standing. Either way, though, since you and your husband have a connected financial picture it is a conversation for you to have, and to agree upon, together. I hope that helps. Kenny

]]> By: Matt Sims http://settleyourcreditcards.com/blog/?p=29#comment-248 Matt Sims Mon, 30 Mar 2009 20:28:04 +0000 http://settleyourcreditcards.com/blog/?p=29#comment-248 Chase: Three months into it, they offered 95%, I asked for 40%, they tried to get it approved and it was denied and they offered 75% after the 40% denial. That was a month ago. I just passed the 120 day late mark, and since they changed my interest from 9 to 28 the balance is climbing and now around $17k and today pre-litigation called informing me that they are going to pursue litigation unless I come up with 65%. I am standing my ground and hoping for a better offer. Please offer some advice or feedback as soon as you can. Thanks Matt Chase: Three months into it, they offered 95%, I asked for 40%, they tried to get it approved and it was denied and they offered 75% after the 40% denial. That was a month ago. I just passed the 120 day late mark, and since they changed my interest from 9 to 28 the balance is climbing and now around $17k and today pre-litigation called informing me that they are going to pursue litigation unless I come up with 65%.

I am standing my ground and hoping for a better offer. Please offer some advice or feedback as soon as you can.

Thanks
Matt

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