My dad is 74 years old and recently told me he has $20K in credit card debt. About 15 years ago, a friend of mine had $16K in credit card debt, and she managed to settle it for $1200 after negotiating with the credit card company. Can I do the same for my dad? He’s not as sharp as he used to be, and I’m trying to help him out. Any advice would be appreciated.
They’re not just going to forgive the balance out of kindness. They need a reason to do so. Is your dad behind on payments? Does he have any assets they could go after? Can he make payments at all?
The credit card company will want to know all that before considering any settlement.
@Wynn
He gets social security and a small pension. I was hoping to settle the debt like my friend did, but it sounds like it depends on the bank. All I know is it’s a Visa card.
Blaire said:
@Wynn
He gets social security and a small pension. I was hoping to settle the debt like my friend did, but it sounds like it depends on the bank. All I know is it’s a Visa card.
Be careful with settlements, especially if your dad is on social security. A friend of mine had a similar situation—they settled a $38K debt for $12K, but then got hit with a big tax bill for the $26K they ‘saved.’ It counted as income.
@Rin
That’s a good point. I’ll have to look into how that might affect his social security.
If it’s Amex, forget about settling. They don’t negotiate or charge off debts easily.
Jai said:
If it’s Amex, forget about settling. They don’t negotiate or charge off debts easily.
Amex won’t cut the balance in my experience, but they will offer payment plans with lower interest. It’s not perfect, but it helps a bit.
You can try! I had two cards maxed out, and the interest was killing me. I called the company, told them I wanted to pay it off, and they froze my account. I couldn’t use the cards, but they didn’t send me to collections. Once I paid it off, they closed the accounts.
The company would much rather work with you than send it to collections. Maybe you can get a settlement or at least a deal.
@Tali
Yeah, I’m hoping to settle. I need to find out what bank it is—sounds like some are more willing to negotiate than others.
Blaire said:
@Tali
Yeah, I’m hoping to settle. I need to find out what bank it is—sounds like some are more willing to negotiate than others.
Mine was Capital One. Definitely give it a shot—they might work something out.
Call his credit card company and ask if they have any hardship programs. If you need help, there are debt counseling programs that can negotiate lower rates for you.
If it’s Chase, good luck! But it never hurts to try. Please update us if you can!
Echo said:
If it’s Chase, good luck! But it never hurts to try. Please update us if you can!
Good point! I just know it’s a Visa. I need to ask him about the bank.
Depending on his income sources, your dad might be what’s called ‘judgment proof.’
I don’t know much about this stuff. But at 74, what does the debt really mean for him? Are they going to garnish his wages or something? I’m sure he’s not planning on buying a new car or house soon.
Niall said:
I don’t know much about this stuff. But at 74, what does the debt really mean for him? Are they going to garnish his wages or something? I’m sure he’s not planning on buying a new car or house soon.
It’s more about peace of mind. He doesn’t want the debt hanging over him, and it hasn’t gone to collections yet. I’m trying to settle it before it gets that far.
The first step in settling is to stop making payments. They won’t talk about settlements if they’re still getting regular payments. If your dad doesn’t need to worry about his credit score, like if he’s not planning on getting any loans, you could stop paying and wait for the offers to come in.
At that point, you can either settle for a lower amount or look into bankruptcy. That’s another option if things get too tough.
@Jade
I agree with this. At your dad’s age and income level, there’s really no reason for him to have a credit card with that kind of debt.