Strictly from a game theory perspective having twenty debts probably helped. In your case creditors would have seen it almost as a reverse auction -- If they don't take the deal a different creditor might and then they could end up with nothing. I had a friend in a similar situation he had a gambling habit and went from $2-3k in credit card debt to just under $140k over four cards in a few weeks. The credit card companies could see both the rate of debt increase and the debt to the others so were willing to deal. When you only have one debt I think it is going to be harder.

I consider myself an expert on debt settlement since I settled twenty debts on my own. The creditors will settle a debt if your not stats barred. If you’re going to settle and your looking for a low percentage fax your offer directly to the creditor’s senior manager. If you’re unemployed get a notarized letter from you lawyer stating this. If you have medical condition that is forcing you not to work get a letter from your doctor. All these things really help your case when you want to settle for a low amount. I always start at the bottom and I would offer 10% and if they reject it they will counter offer. If your debt has been charged off and it’s an R9, the most I would settle for is 50% of the original balance when you stopped making the payments. The best time to submit your offer is between the 15th and 20th over every month.

1) Are you working at the present time?

2) Do you own or rent?

"Because its been delinquent 12 times without any payments, then some, then none etc in the last 8 years.

With your reply, why would anyone settle ??? "

Creditors settle when they think that is the best they can do. Settling isn't just well I don't feel like paying the debt any more so I want a discount.

I'm hardly an expert on the credit settling but your situation doesn't look promising.

1) The delinquency is not that old. Creditors tend to settle as you approach a critical date like the stat barred date. You are at least a year away from them considering taking a discount.

2) You are dealing with BNS. Of all the banks they are the one who sues people frequently. If you have funds to make them a settlement offer then in all likelihood you are not judgment proof. Normally when creditors claim that they are going to sue you it is an empty threat. With both BNS and Telus I'd take it seriously as while they too sometimes make empty threats they also sue people at a very high rate as part of a deference philosophy.

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What kind of settlement offer would you be making? How much of the $6500 would you offer in a lump sum to get rid of the debt?

What would be the source of those funds?

Are you employed?

Obviously you don't have good credit with all the late payments and the delinquency but do you have horrible credit?

Do you own a home or vehicle?

4-5 months ago

When was the last time you made a payment on this account?

Because its been delinquent 12 times without any payments, then some, then none etc in the last 8 years.

With your reply, why would anyone settle ???

How can you offer to settle if you are claiming that you can't make payments? Where would the settlement funds come from and if you have access to funds why are you not making payments to keep it current?

I borrowed around 6500 from Scotia back in 2002 and had been paying it off nicely until I lost my job and couldnt make payments anymore. Its at around 4500 because my dad had been making miniscule $100 dollar payments on it to keep the nasty phone calls at bay.

Well now he has stopped and they are saying we have 15 days until it goes to collections. First thing is, I tried to get overdraft protection about 4 years ago and said no because I had a loan go to collections.

ANYWAY...should I call Scotia and try to settle this amount NOW or wait until it goes to collections and try them for a lesser amount ?

I am so sick of this BS loan that I have tried to pay off 5 times but it just goes back up again because its at 28% or something crazy.

All help much appreciated