My question involves collection proceedings in the State of: Pennsylvania
I am approximately $20,000 in debt with various credit card companies, the largest balance is $7,500 and the smallest is $2,000. I am not delinquent, all payments have been made on time (albeit the minimums). Do I have to wait until I become delinquent to negotiate a settlement? All the sources I read seem to suggest that is the only way to go, while indicating that you are considering bankruptcy.
I was thinking about letting my account go delinquent for the next three months, attempting to negotiate a settlement with my creditors, and then if that was rejected, attempting to negotiate a settlement with whatever collection agency they will sell my accounts to. I'd like to find people who have successfully settled debt themselves and ask them questions about their experience. I am still current on all my credit card debt, but I've reached the point where after bills and minimum payments, my monthly budget is exhausted and my cash flow is negative. So I have to buy food and gas on credit. I'm 26 and I have been in consumer debt since I was 18. I don't think I qualify for chapter 7 because I make just over the median income in my state and I am a single male.
I'd like to be able to walk away paying each creditor 30%-50% of the balance. The only property I "own" is a car, but that is financed through a bank (not affiliated with the credit card companies) and the outstanding balance is $26,000, I bought it for $32,000. Complicating this issue is that my parents "bailed me out" twice to the tune of $20,000 dollars so my creditors might think I have more money then I have. They are helping me with another credit card with a $8,000 balance not related to the $20,000 debt on the other ones.
So is the general strategy for do it yourself debt settlement going delinquent then negotiating to settle between 30 and 50 percent of the debt to each creditor?
I am approximately $20,000 in debt with various credit card companies, the largest balance is $7,500 and the smallest is $2,000. I am not delinquent, all payments have been made on time (albeit the minimums). Do I have to wait until I become delinquent to negotiate a settlement? All the sources I read seem to suggest that is the only way to go, while indicating that you are considering bankruptcy.
I was thinking about letting my account go delinquent for the next three months, attempting to negotiate a settlement with my creditors, and then if that was rejected, attempting to negotiate a settlement with whatever collection agency they will sell my accounts to. I'd like to find people who have successfully settled debt themselves and ask them questions about their experience. I am still current on all my credit card debt, but I've reached the point where after bills and minimum payments, my monthly budget is exhausted and my cash flow is negative. So I have to buy food and gas on credit. I'm 26 and I have been in consumer debt since I was 18. I don't think I qualify for chapter 7 because I make just over the median income in my state and I am a single male.
I'd like to be able to walk away paying each creditor 30%-50% of the balance. The only property I "own" is a car, but that is financed through a bank (not affiliated with the credit card companies) and the outstanding balance is $26,000, I bought it for $32,000. Complicating this issue is that my parents "bailed me out" twice to the tune of $20,000 dollars so my creditors might think I have more money then I have. They are helping me with another credit card with a $8,000 balance not related to the $20,000 debt on the other ones.
So is the general strategy for do it yourself debt settlement going delinquent then negotiating to settle between 30 and 50 percent of the debt to each creditor?
Settling a Debt: Negotiating Lump Sum Settlement Not Delinquent Yet,
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