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How do I settle my Bank of America credit card for cash?

I owe $12,941.54 to Bank Of America credit card. I have called them several times to see if they would settle for a lesser amount. I want to pay this off and have nouthing to do with Bank Of America anymore. Is their a way to settle with them for a cash pay off ? How do I go about doing this ?

Can anyone help me.

John

How do I settle my Bank of America credit card for cash? by

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  • Penny

    I’m trying to pay off cc w/ Chase.  My second call I was told they wouldn’t settle for anything less than 30-35% of the amount owed.  So I believe they will settle for that, and I can pay it in 92 days, in four payments or one lump sum.  They will file the 1099-C and the settled debt will be taxable for 2012 taxes at 15%, PLUS they said they are required to report to the credit agencies the settled debt.  I will for sure get a “R5″ rating, meaning equal to a rating as if I were five payments late in paying.  I’m trying to settle for a total cost to me of $500….it’s difficult, but I’m not done yet.  Call and find out what they require, what penalties there are.  Call several times.  When I do settle, I’m going to do it through a supervisor of higher up to make sure they can negotiate with me.  The underlings have scripts and are there to wear you down in my opinion.  Hope this helps!

  • Djcharliepeters

    Kinda the same trap I was in with BOA.  I made payments on time, but they would not settle. Eventually I just closed account and slowly paying off on time.  Your late payments will hurt your credit score more than the settlement I think.

  • Aaa

    Hi John,
    As many of the others suggested here, you can settle.  I have not worked with Bank of America credit cards, but I have settled with other companies.  We were behind, the debt did get turned over to a collection agency, and it required patience on my part, but we were able to settle for about 40% of what we owed and it was able to be done with a payment plan since we didn’t have enough cash to settle outright (we were in deep).

    One thought to keep in mind, in addition to the credit hit, is that the settled amount will be reported as income at the end of the year.

  • Mastersondreamz

    call the bank and ask for a debt reduction for cash to release your debt

  • http://twitter.com/Rendal49 Craig Arbour

    I’ve settled a number of debts. Usually it works better once it gets to collection agency. Then all you have to do is ask. Then if you don’t get the deal you can do. Wait and ask again. I settled a $6800 debt for $1400 and a $1000 for $500.00.

    • http://GetOutOfDebt.org Steve Rhode

      Good job Craig!

    • Ajdevit

       Who are the creditors,Craig? I have a $6329 and $5490 credit card loans with CitiCards and $4024 credit card loan with GE Money Bank. The $6329 card is back with Citicards after it has been with 2-3 collection companies. The $5490 account is with Asset Acceptance LLC and the GE Money Bank account is with Midland Credit Management. Can somebody suggest me how to go ahead with the settlement process?

      Thanks

    • Buythatbuythat

      Did you ever get demand to pay in full or else they would sue you

  • Elizabeth Barney

    Be careful with this- my parents had 25k in credit card debt and were advised to stop paying in order to get the credit card companies to negotiate- they took a hit to their credit and the companies refused to settle- they actually increased the interest rate from 18 to 25%! My parents buckled down with their budget and have finally paid a lot of that off, but it has taken longer than if they had just made consistent payments. Just a word of caution.

  • Debby

    When my husband died Bank of America settle a credit card amount for half of what I owed.  I didn’t call them, they called me.   They probably will settle if you call them back when they call you.

  • Bdlion

    I recently settled three Chase credit cards for 50% of what I owed. However, I was 120 days late on them, and I borrowed money from a private money lender to pay of the settled amounts. My credit was affected, but I am rebuilding it using the Fair Credit Reporting Act and a credit repair company.

    During this experience, I learned that the credit card company usually won’t help you unless you have missed one or two payments. Missing payments will hurt your credit score. Chase settled with me quickly because I had the money to pay them off immediately. Also, the credit card company will report to the credit agencies that the accounts were settled  for less than the amount owed.

    I originally tried credit counseling, but it was not much help and I dropped out. I tried a debt settlement company (attorney based), but they ripped me off and never settled any of my accounts. If you have cash on hand to pay off a settled amount, you can probably negotiate with B of A yourself. You may have to take a temporary hit on your credit score, though.

  • KarenJ

    Bank of America will consider your settlement offer, but most likely not until you are at least a few months late on your payments.  If you are current, BofA has no reason to take less than the full amount of what you owe.  It affects your credit score to be late on your payments, but many people feel it is worth it to pay off the debt. 

  • Cody

    I am interested in doing the same thing.  However, I hear that it does affect your credit score if you settle for a lower amount.  Good luck!

    • http://www.consumerrecoverynetwork.com/ Michael

      Its not necessarily the settling that impacts a credit score as much as it is the missing payments before the opportunity to settle arrives.
      If your debt concerns have reached a level where affects to credit scores are not a primary concern – settlement is an option.
      If the concern for ones credit score outweighs the concern for ones ability to deal with debt – the debt issue is likely not one that is severe.

  • http://www.consumerrecoverynetwork.com/ Michael

    Hi John,

    Yes, you can settle with them.
    How many payments have you missed to BofA?
    What amount of money do you have on hand or access to that you can use to fund an offer?

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