Mar
Here come the credit card companies.
I guess I should consider this good news, but it is odd how we got to this.
Today I received a call from Bank of America, remember, we just decided last month not to pay our credit card, instead we decided to save the money and attempt to settle our debt with the credit card companies. Well, today BOA call to see why our bill wasn’t paid on time and we informed them of our plan to seek a settlement with them to pay the cards off in full.
In less than a month BOA has dropped their settlement offer from 10% off the current balance to 50% off the current balance. The two cards that we discussed have balances of $2800 and $5400. Today they offered to settle for $1400 over 4 months and $2700 over 4 months. It is a savings if $4100 on a debt of $8200 if we can pay them off in 4 months.
I am going to agree to the deal and begin paying off the final balances on these two credit cards. As much as it disgusts me that I cannot pay them back in full, I need this deal to get back on track.
Settling my debt with the credit card companies will help me avoid bankruptcy and only damage my credit score for a couple of years. I am on the right track.
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Keep in mind that you will have to pay income tax on the settled amount…..in this case $4,100
May 17th, 2009 at 8:42 pm