American Express debt settlement
Q: I tried to settle with American Express. My outstanding debt with them is around $8,000. I am having cash flow problems and while this account is still in perfect standing, it will not be too long before I default. May be 5 to 6 months. So I offered $2,700 settlement I would borrow interest free from in-laws, and was flatly refused. Should I get a lawyer?
A: What you need to do is to miss a payment. American Express will not enter debt settlement with any card holder if he or she is current on the payments. No lender would. Missing a credit card payment will of course, knock your credit score down quite a bit, but will get their attention. If you miss more, American Express will likely send Nationwide Credit after you, which is its primary collection agency. The bottom line is you must demonstrate some sort of financial hardship. Even imply that bankruptcy is being discussed so they will get nothing.
If American Express does start talking debt settlement, offer them $2,000 initially, which is 25% of your $8,000. Then you can raise to $2,700, making it a final offer. Just be ready it may not go smoothly. In case if National Credit start threatening you, learn basic garnishment laws in your state as well as the statutes of limitations on debt and judgment. Garnishment is the most important thing because National Credit is very infamous for making those threats even in states where wage and asset garnishment is very difficult if outright unlawful.
Related entries,
Settling credit card debt with Chase - why settle?
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Negotiated credit card debt reduction, but is asked for more
Sat Sep 18, 2010 02:09PM | Copyright: www.bad-credit-advisor.com | More in Credit Card Debt | Comments (0)
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