Chase is suing me for a $10.2k credit card debt that I’ve had since 2018. For years, I was paying about $250 a month in interest alone because I couldn’t afford more. The debt didn’t go down at all.
A year ago, I stopped making payments, and now they’re suing. Before I reach out to them, does anyone think they’d settle for 30%? It’s all I’ve got right now, and I’d spend it if it clears the debt. If not 30%, what’s the lowest they might accept?
I’ve worked as a debt collector for 20 years.
Can you give more details? Is this debt already with a collection agency, or is it still with Chase? Most banks won’t go to court unless they’ve tried collecting through an agency first. The further it goes, the less they’ll likely settle.
Since it’s with Chase and they’ve already filed a lawsuit, it’s unlikely they’ll knock off 70% of the debt. Doesn’t hurt to ask, though.
I’d try to avoid court if possible so you don’t get a judgment that could lead to wage garnishment. Chase was tough when I owed $4,500 – I filed Chapter 7, and they got nothing.
Good luck.
You won’t know how low they’ll go until you ask. Many companies prefer some payment over nothing, but you have to handle it right.
Zola said:
You won’t know how low they’ll go until you ask. Many companies prefer some payment over nothing, but you have to handle it right.
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Zola said:
You won’t know how low they’ll go until you ask. Many companies prefer some payment over nothing, but you have to handle it right.
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Really here to help, huh?
@Galen
Just giving real advice, not hopeful advice.
If it’s an attorney representing Chase, try calling and asking about settlement options. They might offer something reasonable. You could also ask about a payment plan. Surprised Chase didn’t send settlement offers by mail first, they usually do.
If they’ve already sued, your chance to settle might have passed, but you never know.
Timber said:
If they’ve already sued, your chance to settle might have passed, but you never know.
Not always true. You can try to settle even after a judgment, but your odds are better before it gets to that point.
@Emerson
I did say “might” though, didn’t I?
If you can get them to agree to 50%, you’re doing well.
When I’ve had medical debt, I’d call and say, ‘I’m paying those who offer a discount first. Can you lower your bill for payment in full?’
I’d wait for it in writing, then send a check. I’d never give electronic access to any account, just in case.
@Finley
Solid advice, but keep in mind medical and consumer debts work a bit differently.
I settled a $15k debt for about 25% around 10 years ago. Start with a low offer and see what they say.
Vale said:
I settled a $15k debt for about 25% around 10 years ago. Start with a low offer and see what they say.
And definitely get it in writing before sending any money.
If you don’t have many assets, you could tell them you have $3k and ask if they’d settle for that or get nothing if you file for bankruptcy.
They’ll likely settle for less, but it depends on your financial situation. Contact Chase if no suit is filed yet; otherwise, you may have to talk to the law firm handling it. You could also ask about a payment plan. Try to deal with it before it gets worse.
They should settle for less. Give them a call.
If you put $3k down, wouldn’t that reduce interest so more of your monthly payments cover the debt?