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Debt settlement on credit card


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Hey guys I want some opinions. I have a credit card that’s past due 4 months I owe 25k on it. I lost my job don’t have much income. They offered to settle with me for 9k  which I can afford.  Is it worth settling ? I wanna get start re building my credit. I can’t afford to pay in full. It’s NFCU credit card 

 

 

thanks

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22 hours ago, andrew456 said:

Hey guys I want some opinions. I have a credit card that’s past due 4 months I owe 25k on it. I lost my job don’t have much income. They offered to settle with me for 9k  which I can afford.  Is it worth settling ? I wanna get start re building my credit. I can’t afford to pay in full. It’s NFCU credit card 

 

 

thanks

 

For NFCU, settlement at less than 40% of the debt sounds like an attractive offer for them.  It comes at a juncture where you avoid the involvement of an outside collection agency (and a separate collection account entry on your credit report).  If you earnestly can't meet the minimum debt service on this account until such time as your circumstances improve, this settlement offer would appear to be a reasonably strong option by which to exist this liability.

 

 

 

 

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Do you have any other credit accounts (auto loan, another credit card, etc.) with NFCU?

 

Credit unions are vindictive when you've caused them a loss, and they aren't shy about invoking the cross-collateralization clause in your account agreement.

 

Make sure that if this is settled, it's a final settlement and they aren't just adding the "discount" to your auto loan or other credit obligation.

 

Cross-collateralization is one of the 32 zillion reasons to avoid credit unions, unless you have critical financial needs that no one else is willing to serve.

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I'm just putting this out there for a datapoint, and should not be misconstrued as legal advice.

 

NFCU was offering me some pretty low settlement offers last year before I filed for bankruptcy. The last letter they sent me was for 25% of the balance.

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15 hours ago, IndyPoolPlayer said:

NFCU might let the OP remain a member, but for that much loss I doubt it.

 

I burned NFCU for about $25k in bankruptcy, and they left my savings and checking alone. There is a permanent banner above my accounts that says "Your account information is being provided for informational purposes only. Providing you this information is not an attempt to collect a debt."

 

I will probably close my membership since I no longer have any use for them.

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3 hours ago, jonson said:

 

I burned NFCU for about $25k in bankruptcy, and they left my savings and checking alone. There is a permanent banner above my accounts that says "Your account information is being provided for informational purposes only. Providing you this information is not an attempt to collect a debt."

 

I will probably close my membership since I no longer have any use for them.

 

It would make sense that BK laws would preempt abusive collection policies in a kredit younyun account agreement.

 

Thanks for the anecdote; I hadn't thought about that angle.

 

 

Edited by cv91915
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On 4/28/2021 at 7:26 AM, jonson said:

I'm just putting this out there for a datapoint, and should not be misconstrued as legal advice.

 

NFCU was offering me some pretty low settlement offers last year before I filed for bankruptcy. The last letter they sent me was for 25% of the balance.


how many months were you behind ?  I’m 4 months behind at the moment. What was the amount you owed?

 

 

I have no other accounts with navy besides another credit card that I haven’t used with zero balance. 

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13 hours ago, andrew456 said:

how many months were you behind ?  I’m 4 months behind at the moment. What was the amount you owed?

 

 

I have no other accounts with navy besides another credit card that I haven’t used with zero balance. 

 

I was about two years behind. The debt was considered charged-off. $25k.

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