Anybody ever managed to get a reduced credit card payoff?

[jetmech1983]

I am carrying a BOA card currently that I would love to get paid off and gone since I don't use credit anymore at all. My question is whether anyone here has experience with getting a lower pay off than that owed on the card, and if so how to keep if from messing up my credit.

 

[kcinnick]

I am carrying a BOA card currently that I would love to get paid off and gone since I don't use credit anymore at all. My question is whether anyone here has experience with getting a lower pay off than that owed on the card, and if so how to keep if from messing up my credit.

If you are on time, they won't budge.

If you pay them anything they won't budge.

If you don't pay anything, they will jack your rate, add fees and penalties, then will settle for the original amount.

When you hear about people paying 30% or 50% of what they owe, its not what they borrowed, its 50% of the jacked up amount.

How long has it been since you made a payment, after 3 years of non payment in Louisiana about the worst thing you can do for your credit is acknowledge the debt by making a payment. SOL for CC's in LA is 3 years.

 

[jetmech1983]

If you are on time, they won't budge.

If you pay them anything they won't budge.

If you don't pay anything, they will jack your rate, add fees and penalties, then will settle for the original amount.

When you hear about people paying 30% or 50% of what they owe, its not what they borrowed, its 50% of the jacked up amount.

How long has it been since you made a payment, after 3 years of non payment in Louisiana about the worst thing you can do for your credit is acknowledge the debt by making a payment. SOL for CC's in LA is 3 years.

Never have mad a late payment actually. It's on time everytime, just seems it all goes to interest. I'm looking at getting a little money in a month or so and was just wanting to pay the dern thing off.

 

[kcinnick]

Never have mad a late payment actually. It's on time everytime, just seems it all goes to interest. I'm looking at getting a little money in a month or so and was just wanting to pay the dern thing off.

Yeah, they probably won't come off at all. Some of the Credit Card companies will make a deal with you if you can show the credit card is causing you a hardship. I know HSBC does it, they will reduce or eliminate your interest rate, but they cancel the card. I hear BOA is a pretty bad one to deal with though. If you have good credit, try to get card with 0% balance transfers, if you can't get that and you don't make much money call up and beg, you might have to do it 10 times to get the right CSR that will send you to the right person that can reduce your interest rate.

 

[kcinnick]

Don't actually apply for cards if you are unsure, go to different credit card websites and look for "prequalifiers". Discovery, AMEX, Capital One all have them, others might to, what they do is search their databases for soft pulls to see if you have already qualified for one of their cards without pulling a hard on your credit.

 

[jetmech1983]

Yeah, they probably won't come off at all. Some of the Credit Card companies will make a deal with you if you can show the credit card is causing you a hardship. I know HSBC does it, they will reduce or eliminate your interest rate, but they cancel the card. I hear BOA is a pretty bad one to deal with though. If you have good credit, try to get card with 0% balance transfers, if you can't get that and you don't make much money call up and beg, you might have to do it 10 times to get the right CSR that will send you to the right person that can reduce your interest rate.

Thanks for the help. I was hoping there was a chance. Darn it.

 

[PrairieCajun]

A reduced payoff would consist of a write off (which I'm sure they won't give you anyway) that would destroy your credit. Congrats on getting the rats out of your life. You'll be happier than you can remember.

 

[3fifty7]

Unless the rules have changed,(Be real careful because this could be a slippery slope). You can get another credit card with say 6-12 months intrest free on balance transfers. You have to be dedicated to paying off the ENTIRE BALANCE IN THE ALLOTED TIME FRAME or its possible they can hit you with the back intrest they would have earned.
Im not saying its a good idea, but it may help you out.

 

[jetmech1983]

A reduced payoff would consist of a write off (which I'm sure they won't give you anyway) that would destroy your credit. Congrats on getting the rats out of your life. You'll be happier than you can remember.

Yeah tired of dealing with their sorry butts. I want to get down to just the house, and I think I'll be very happy then.

 

[USMC-Deano]

Credit card debt is bad, mmkay??? Seriously, congrats on trying to do the right thing and get it out of your life. I remember the relief I felt when I paid off my credit card debt earlier this year. I still have one card through USAA that I'm whittling down, but I paid off 3 or 4 other cards that were just sucking the life out of me and my family. Even though I know CC debt is bad, I'm still glad I did it when I did. I was young when I did it and my credit limit wasn't high enough to get myself into hundreds of thousands of dollars of debt. I thank God every day for letting me learn this lesson early in life.

 

[PrairieCajun]

Credit card debt is bad, mmkay??? Seriously, congrats on trying to do the right thing and get it out of your life. I remember the relief I felt when I paid off my credit card debt earlier this year. I still have one card through USAA that I'm whittling down, but I paid off 3 or 4 other cards that were just sucking the life out of me and my family. Even though I know CC debt is bad, I'm still glad I did it when I did. I was young when I did it and my credit limit wasn't high enough to get myself into hundreds of thousands of dollars of debt. I thank God every day for letting me learn this lesson early in life.

Having a note on a house is burden enough. Virtually none if us here save to buy a house in cash(would be cool if we could) but the beatdown of credit card debt keeps you broke. It is like concrete hanging around your neck everyday. When it is gone, the savings goes up, the everyday ability to stomach bad $hit that happens goes way up and the swagger comes back a bit. That is the kind of thing that can be life altering if you have been hauling that rock for years. Savings can become an addiction after that...and that isn't a real bad thing.

 

[louis488]

Well you can get a pay off of 30 to 50 percent less but you have to wait for it to go to collections and your credit is messed up then. It happened to me after Katrina I ended up paying 4k on about a 8k debt. Another this is what ever debt is forgiven is considered income so uncle Sam sent me a adjusted tax return telling me to pay more. You can try and call them and give them a sob story and maybe they will drop the interest rate. Can't hurt to ask. If you don't want to screw up your credit just tighten you belt the best you can and send all you can to them.

 

[USMC-Deano]

Having a note on a house is burden enough. Virtually none if us here save to buy a house in cash(would be cool if we could) but the beatdown of credit card debt keeps you broke. It is like concrete hanging around your neck everyday. When it is gone, the savings goes up, the everyday ability to stomach bad $hit that happens goes way up and the swagger comes back a bit. That is the kind of thing that can be life altering if you have been hauling that rock for years. Savings can become an addiction after that...and that isn't a real bad thing.

Couldn't agree more. We're actually on target to pay off our car note 6 months ahead of time(March 2012), and we're saving for a vacation this coming Summer, as well as saving in order to not have to go to school this Summer. Wife and I have both been in school non-stop since January 2010, only breaking between semesters. Two Spring semesters, two Summer semesters, and two Fall semesters without any breaking because we couldn't afford to NOT go(Post 9/11 GI Bill), but now that we are mostly debt free(still a couple things), we are able to save. In fact, just since July/August, we've put almost $2500 in savings. Not bad for a couple students who don't work.

 

[gbundersea]

Whenever you pay it off, DO NOT CANCEL IT, even if you never use it again! It will remain as an active, zero balance account showing longterm positive credit history, which is very beneficial to your score and creditworthiness.

 

[jetmech1983]

Whenever you pay it off, DO NOT CANCEL IT, even if you never use it again! It will remain as an active, zero balance account showing longterm positive credit history, which is very beneficial to your score and creditworthiness.

I always thought having a card just sitting out there with no balance was bad due to the fact it could be pulled out and used. Wow I am behind the times on credit I guess.

 

[gbundersea]

I always thought having a card just sitting out there with no balance was bad due to the fact it could be pulled out and used. Wow I am behind the times on credit I guess.

Well, having a LOT of unused accounts sitting around open is indeed a negative. 2-3 open accounts with low/no balances and excellent, long-term history are ideal.

Eventually the creditor MAY close such accounts on their own, if they are never used. Personally, I would use such a zeroed-out credit card for gas or something else small for which you pay cash, and pay it off immediately. That way you keep it not only open, but active, yet never incur any interest.

 

[Bryan]

I applaud you for getting out of the never ending circle of credit card debt. However, I am having a hard time understanding why you feel that the credit card company should take a lower payoff amount than what you actually owe. If you borrowed the money then don't you think you should pay what you owe? Why should anyone be entitled to repay less than the total amount they are responsible to repay?

I dealt with credit card debt when I was in college. Thankfully I learned my lesson and was able to pay it all off. It took three years, but I did pay off every balance in full after I graduated. It never crossed my mind to ask for a reduced payoff. That to me would have been irresponsible. I spent the money therefore I was responsible for paying it back.

I'm sure some are going to say that credit card companies are evil and they charge ridiculously high interest rates. While I do agree with that opinion, they are in business to make money. If you need to borrow their money, be prepared to pay for it.

It is a tough lesson to learn.

 

[jetmech1983]

I applaud you for getting out of the never ending circle of credit card debt. However, I am having a hard time understanding why you feel that the credit card company should take a lower payoff amount than what you actually owe. If you borrowed the money then don't you think you should pay what you owe? Why should anyone be entitled to repay less than the total amount they are responsible to repay?

I dealt with credit card debt when I was in college. Thankfully I learned my lesson and was able to pay it all off. It took three years, but I did pay off every balance in full after I graduated. It never crossed my mind to ask for a reduced payoff. That to me would have been irresponsible. I spent the money therefore I was responsible for paying it back.

I'm sure some are going to say that credit card companies are evil and they charge ridiculously high interest rates. While I do agree with that opinion, they are in business to make money. If you need to borrow their money, be prepared to pay for it.

It is a tough lesson to learn.

Mainly due to the fact that through interest I am sure they have already recieved more than I ever purchased on the card, other than that mainly just to save money.

 

[Yrdawg]

I applaud you for getting out of the never ending circle of credit card debt. However, I am having a hard time understanding why you feel that the credit card company should take a lower payoff amount than what you actually owe. If you borrowed the money then don't you think you should pay what you owe? Why should anyone be entitled to repay less than the total amount they are responsible to repay?

I dealt with credit card debt when I was in college. Thankfully I learned my lesson and was able to pay it all off. It took three years, but I did pay off every balance in full after I graduated. It never crossed my mind to ask for a reduced payoff. That to me would have been irresponsible. I spent the money therefore I was responsible for paying it back.

I'm sure some are going to say that credit card companies are evil and they charge ridiculously high interest rates. While I do agree with that opinion, they are in business to make money. If you need to borrow their money, be prepared to pay for it.

It is a tough lesson to learn.

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[Bryan]

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Where's the troll? I didn't see any troll. Crap!! Did I miss it?