I have about 4,000 dollars of VISA debt and about 11,000 dollars Discover card debt. I also have considerable student loans. I recently came into some money and wanted to pay off all my credit debt – which I have barely enough money to do… anyway, I was thinking about asking Discovercard to reduce my total debt to them by 25%. So, if they agreed I would be paying 75%. However, with everything I have been reading I was just thinking of paying it all off and saying farewell. So far, all my payments for everything have been up to date and on time.
I contact Discover card and ask for a reduction in debt or just pay the whole stinking thing?
The best move for your credit is to pay the whole stinking thing if you can.
As long as you are current on your bills they really are not going to give you the time of day on this. Even if they did agree to such a settlement it will result in bad credit, a black mark on your credit report and probably a lingering tax liability when they report the forgiven debt to the IRS on a 1099-C.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.