I have significant credit card debt having overspent and invested in coaching, personal development programs and starting a new business that I’m very proud and excited about.
One of my cards is TJX Synchrony with a balance of $7900 at 27.49%. I’d like to pay a good amount with my tax refund. What would you recommend if I’m interested in calling to see if they’ll accept a smaller amount for payoff? I’m not behind on payments.
Congratulations on finding a rewarding path forward. It sounds as if you have only good days ahead.
The key part of your question is the statement you are not behind on payments. Creditors have no incentive to settle a performing account. That’s exactly what they are hoping to get. The sweet spot is a high balance, high interest rate, account that is no delinquent.
Like it or not settling debt is a game of playing the internal process at the creditor. To get to the right department and trigger a settlement offer you will have to go delinquent. This might be 90-120 days past due. Intentionally falling past due is not with risk or cost. When you fall that far behind it will be negatively reported on your credit report, you will be in active collections, you may be charged additional fees and penalty rates, and or course you risk the possibility of being sued. Oh yes, and the forgiveness of debt more than $600 will be reported to the IRS and if you are not insolvent then you will owe income tax on the forgiven debt.
Only you can determine if those consequences are worth the risk of getting a discount and settling the debt.
I would suspect that with brighter days ahead the logical path would be not to invite all of those negative consequences into your life. Why add unnecessary and voluntary angst into a current life of positivity and healthy personal development?
But that’s just my opinion.
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