Settling with capital one

Submitted by Anonymous (not verified) on Thu, 07/29/2010 - 04:28
Forums
Credit repair

Hi,

I have a credit card with a limit of $2900 on it. Then, I went to study abroad and when I got back, all my good work was lost. I had to struggle in finding a job and had to settle for minimum wage to pay my living expenses.

As a result I was unable to make payments on the card. Now, I have found a decent job and want to settle this credit card and start repairing my credit. I would like to send a validation letter to the credit card company to start getting things in order.

Some facts:

1. The card was maxed out at $2900 when I made my last payment.
2. I have not been making payments for a year.
3. I haven't received any bills, or notices.
4. The last bill I had received showed the account at $3900.

The questions:

1. Should I call the credit card company? Or is it better to start out with a debt validation letter?
2. Should I contact them now or should I wait until I have enough money to pay in full in case they try to sue me?
3. Is it better to settle for a lower sum or to pay in full to have the mark removed from my credit?

Thank you for any and all help.

Aaron

Hi Pearl,

Should I call the credit card company? Or is it better to start out with a debt validation letter?

You know that you owe this debt, and moreover this is the creditor himself. Thus, you are not required to send debt validation letter to the creditor. Debt validation letter is generally sent to a collection agency. So, you can directly call the credit card company, and settle the diet if you think you won't be able to pay the outstanding debt amount. Get the settlement agreement in writing.

Should I contact them now or should I wait until I have enough money to pay in full in case they try to sue me?

If you think that you can make the payments you can contact them now.

Is it better to settle for a lower sum or to pay in full to have the mark removed from my credit?

It is better to pay in full, and request the creditor to remove the negatives through the "Pay for delete" agreement. Debt settlement hurts your credit.

Thanks,

Aaron

Thu, 07/29/2010 - 06:53 Permalink