Settling credit card debt - any advice/info?

[meggers]

I wouldn't go too low there, cause you might tick 'em off & then you'll have to deal with a relentless collection agency. LOL! But, it is interestin.' If you could squeeze out a decent offer, they just might accept. ;)

[ILv2Shop]

Wishing you the best with this Carisal. Keep us up on how it goes.

[RosieG]

good info to have....... 5 cent on the dollar on my debt would be under $625. should I counter offer them $750?? LOL....... I may be able to do that and get it over with.

Looks like they are already taking quite a hit on the debt. I doubt they would take $750 on a $12,000 debt.

[Shannon T]

It never hurts to ask. Everything is negotiable. If you file bankruptcy they will get 0. =)

[nateNnatsmommy]

Keep in mind that it's seven years from from the date of the last payment - so if you're able to work out a payment plan, and pay it off in a year, then it'll drop off your report seven years after it's paid off.

Good luck!

Its 7 years but some exceptions exist, such as student loans.

[Porfidio2]

Unless you are "insolvent" which usually occurs during bankruptcy, you WILL have to include the amount "forgiven" as income (on line 21 of IRS form 1040). I really like the idea of trying to negotiate the elimination of the 1099-C. BofA doesn't gain anything by issuing one (unless they are required to because you aren't filing bankruptcy). It's still a write off. It can hurt you because depending on what your total income is, you can bump tax brackets and end up owing the IRS too (since there is no withholding on the forgiveness). Figure an "effective" tax rate of 10%, that's another $850 that the IRS will get.
I'm a licensed tax preparer in Oregon.. I've dealt with this stuff for years!

[pwetypweas]

Couple of things --

If you can settle with BofA before they send it to a collection agency - DO - Collection agencies will not only collect your debt - they can then sell your PAID OFF DEBT to another collection agency...some people get stuck in these cycles and can have the same debt (whether paid or not) showing multiple times on their credit reports (and they can resurface YEARS after the debt is supposed to be off your credit report).

And a note on the bankruptcy thing - that's not necessarily true anymore (about not having to pay it back) - under the new bankruptcy's laws you generally have to pay stuff back and ruin your credit in the process.

[crecian]

I don't know if they would accept an offer of $750 or not, but if that is a number you are willing/able to give them right then and there while on the phone with them then I would let them know that (like pp said it doesn't hurt to ask) and if they will not accept that then ask what they would accept on a payment plan...this happened to me recently and it required an auto debit to my checking account on the same day each month and when one of those debits bounced that ended the agreement and they re-instated the original amount I owed them plus all interest that would have accrued during that time.
good luck and let us know what they say!

[shelleyf]