by Private_Void » Fri May 08, 2009 07:19:24 AM
Good day All
I have a debt settlement strategy and would be curious to hear what you think
I have 2 credit cards:
card#1: balance 5,000$ limit: 5,000$
card#2: balance: 17,500$ limit: 22,500$
The plan is as follows: max out the second card to pay the complete balance on the first card. Stop making payments on the second card and wait until it goes in collection, then try to settle for 25-30% of the debt value in a lump sum settlement. I have a car (on a loan) and no house or other assets, but a fairly decent salary. Overall I see it as a unlikely chance that I would be sued considering my lack of assets.
I currently have an excellent credit rating as I never missed a payment in my life. This strategy would obviously change that. I have another option to do a personal loan for the entire amount (with a co-signer) over 5 years at about 8% interest.
I'd be interrested to hear your thoughts or suggestions on this.
Cheers!
/Ed