Posted on May 27, 2009 at 12:19 pm I've got a bunch of debt collectors hounding me right now. Is this the best time to try and settle my credit card debt? I hear these radio ads and see commercials for these companies all the time but I'm not trying to be had.

Posted on May 27, 2009 at 2:25 pm Generally speaking it is best to try and settle credit card debt when the accounts are past due, as creditors will not negotiate on the principle amount of debt if the consumer is current on all of their monthly payments. Outside of that factor, it is also a good option for anyone who istrying to avoid bankruptcy. So, if you have a high amount of credit card debt, multiple credit card accounts and are behind on most of them settlement may be the best option. Since you are getting hounded by collectors I have to assume you are behind on youyr payments. If I am wrong feel free to let me know.

Posted on May 27, 2009 at 2:51 pm Another good time to try and settle your credit card debt is if you do not qualify for Chapter 7 Bankruptcy.

Posted on May 27, 2009 at 11:26 pm By debt collectors, did you mean collectors assigned by your original creditors, or  third party collection agencies or lawyers? Are they calling you regarding the same debt? If this is the case then your debt has changed hands at least twice already. It means that your debt was bought by what they call Junk Debt Buyers (they buy and sell debts). Meaning they bought your debt from the original creditors, from the assigned collectors, and/or from another collection agency. It's like, for example, your debt is a dollar originally, but they were able to buy it for 7c, and now they are free to collect from you--however much they want--depending on how they can spin you around.Do not panic with regards to the calls. Remember that the longer debts remained uncollected, the better your chances for landing a good settlement (at least with your original creditors.) It doesn't mean though that the creditors are not going to push for legal actions against you. If it is your original creditors who are calling you to settle your debt, the best time to settle is on the third settlement offer. Never look too eager to settle or tell them that you need to get rid of the debt so you could purchase a new home or a car, remember that they are the ones calling, and that they need your agreement, so take your time. Their first offer usually would be high, the second offer is better, but the third one would be the best.

Posted on June 1, 2009 at 9:21 am To address a couple of points made by the previous poster: 1) If it is a junk debt buyer who has purchased your debt, understand that they have done so along with (potentially) a thousand other accounts for pennies on the dollar. Since that is the case, even if they settle with you for 12-15% of your debt, they still make a very solid profit considering that is just one account for them.Think of how much money these debt buyers make if they settle each account in their portfolios for twice as much as they purchased them for! So in other words, be tough, and realize a low settlement should be within your reach. 2) If the original creditor has your debt, I would not necessarily say that you should definitely accept the 3rd offer. The strength of the settlement moreso depends on how far past due the account is. The closer the account is to being written off (180 days past due) by the creditor to the IRS, the better the settlement you should reach as they would prefer that the debt did not charge off. It isn't good for banks to report to investors that they have a high charge off ratio for the unsecured debt they are lending. Keep in mind- this does not apply for some creditors, who you may be able to settle for lower with if the account is with a third party for collection. Because of this, it may be helpful to hire a reputable debt settlement company to work on your behlaf since they will be familiar with the internal policies of each creditor you owe.

Posted on July 7, 2009 at 7:45 am How do you know when to settle credit card debt so you can get the best settlement percentages?

Posted on July 8, 2009 at 3:48 am would it be better to settle a charged-off debt than just merely a delinquent one, too?

Posted on July 8, 2009 at 4:09 am In my experience as a debt collector a couple years ago, the company I worked for typically had a percentage structure according to how behind a particular account was. Debt collectors can also offer settlement offers as mandated by their client, the creditor. In our case, this was how the structure worked:90-119 days behind: 75% settlement120-149 days behind: 60% settlement150-179 days behind: 50% settlement180-199 days behind: 35% settlement200-207 days behind: 25% settlementIf the account was charged off according to my former client's policy, the account would be transferred to the Recovery department, and the percentages were much higheer.

Posted on July 8, 2009 at 4:28 am so what you're saying is, i should settle the more that i fall behind on payment? based on what you're saying, it certainly seems so, given that there are lower rates when you're more behind on payment.

Posted on July 10, 2009 at 2:48 am Well, just like what was mentioned in an abovementioned post, the best time to settle your credit card debt is when it's behind on payment. That question only applies to non-blonde's company. It still depends on the creditor whom you will be speaking or negotiating with.