How could I negotiate my AMEX debt for 25 cents on the dollar. Is there a specific Dept I could call?
I called them today. The Rep supervisor said that the only option he has is to have me pay a down payment of 00, and then a monthly payment of 0.
I am currently unemployed, and my husband is on and off of work- so that option is basically out of question.
I have personally met people that negotiated. Does it just take several calls to get a settlement done, or could I call a certain department directly?
As of today, I am 63 days late.
October 9th, 2009 at 11:01 pm
The key issue is how many months you are behind….You really have to be at least 3 months behind to get a settlement….To any decent settlement you’d have to be at or near the point of default. Honestly, just being 2 months behind, I’d seriously doubt that AMEX is going to offer any settlement..and if they did it would not be 25%. If you want to try to settlement for more like 50%, then you’ll have to let your account slide even further behind….this is very risky and they may take you to court.
Be VERY careful about accepting settlements over the phone…any settlement agreement not back up in writing is worthless. A favorite trick of creditors is to get your "down payment" and then immediately sell your account to a debt collector or send it to their legal department.
One option: Contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS) in your area. They can negotiate much lower payments and interest rates. They DO NOT negotiate settlements.
They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to "enrolled in debt management." This does not damage your credit, but it may make it impossible to obtain new credit while you are enrolled in their program….so don’t use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would probably be denied while you’re enrolled in the CCCS debt management program…. Otherwise, it can be a very good way to deal with your debt.
Please note that CCCS cannot perform miracles in situations where there is an overwhelming level of debt relative to your income/assets. Sometimes Chapter 7 bankruptcy is the only solution to overwhelming debt.
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STAY AWAY from any "debt consolidation" company that promises to cut your debt in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements…None of these “debt consolidation” firms have the power to force your creditors to accept settlements. Your creditors have the right to refuse these terms and take you to court.
October 9th, 2009 at 11:01 pm
Well,
What you need to do is NOTHING.
If you cannot afford to pay them, no worries, do not pay them.
No need to contact them, if you contact them, they will not settle at your terms and conditions.
Let the case go to a collection company. They will contact you. Start negotiating with collectors. That is much more beneficial. Debt collectors buy debt for pennies, so you can easily get a settlement at 25%. I have personally helped people settle at 15%. If you need any help let me know.
Do not get scared with the tactics deployed by collectors.
Read FDCPA (Fair Debt Collection Practices Act)
You can even sue your collector if they violate FDCPA, which will again help you get a better percentage.
I would say, target 15%. It is very realistic.
Thanks