Chase credit card resolution?
When I first got my Chase credit card, it was at 9%+ and has risen to about 29% after a few late (never missed) payments. I am an independent contractor with an illness that has prevented me from being able to work for almost 2 years, hence no workers compensation insurance. When I called and asked Chase if I can settle the account, I was told no by a supervisor. They did offer me a rate of 8% for a year but that has since ended and has jumped back up to 29%+ yet again. I am still unable to work and finally, after about a thousand phone calls, I was finally told yes, I can make an offer of settlement. What this means is that I make an offer and if Chase accepts, I have to pay that figure in full in order to end the never ending cycle of growing interest payments and they let me out of the debt.
My question is, how much do I offer? I assume there is a % of the total that would be accepted, does anyone know what that typically would be?
Thanks in advance,
E
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Tags: card, Chase, chase credit card, credit, E Related, independent contractor, Offer, resolution, workers compensation insurance
5 Responses to “Chase credit card resolution?”
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There is no magic number I have ever heard of. With an outrageous interest rate like that, I would assume the bulk of what you owe IS interest. If you look at what the original sum was (take out interest and any other charges) that strikes me as a fair amount to offer. Here’s why: it was what you effectively borrowed AND if you have to turn to someone who does this professionally (and charges a fee) they can probably get that down to less than that amount and Chase well knows that.
Most likely that amount will be 50% or less of what is owed and yes, companies can end up taking that. Realize, of course, that this will affect your credit rating, but clearly clearing it up is better than letting it run.
Good luck.
You do need to get them off your back. Try a low-ball offer and see what they come back with.
I hope you know that you will be liable for income tax on the amount of ‘forgiven’ debt. (It’s considered as some type of income.) Chase will write it off as a bad debt and give the tax people your info., so you should declare it.
hang in there. You will get out from under eventually.
To me it doesn’t make any sense to work anything out with Chase. You would still have to come up with money to pay them and it sounds like you just can’t afford this. How can you pay Chase anything if you don’t have a job? You can’t.
Look into filing for Chapter 7 Bankruptcy. Speak with an attorney. You have an obligation to yourself to explore all of your options. This would discharge all of your debts. (Some debts, such as child support, student loans and taxes cannot discharged in bankruptcy.) Also, in my opinion, your credit rating would go up if you had no debts.
Good luck.
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