Question
Managing/negotiating US credit debt from abroad?
During my glorious graduate student days I accumulated some debt (around 9 grants over four years... the stipend wasn't exactly high, and health-related costs and the car took care of it. What I'm trying to say is that I am responsible, and did not blow the money on strippers and coke. Not that strippers or dealers accept credit cards, but you get the picture.) Anyhow, I needed to come back to Europe, and back to school... which kind of makes the payments hard. What should I do? I don't want to leave the debt there, because it's not a very honest thing to do, and frankly I might need to go back to the States to work. The question is twofold: can I call the bank to negotiate with them? Would they give me some decrease (either in the debt itself or the APR) if I told them that I still want to pay, but I need their help with it? (I have some money saved up; some of it I could offer to pay, but it's not enough to cover it fully.) Also: it costs money to send money to the US. Would they be able to offer some kind of an assistance with it? As I see their either help, or risk to default on the whole debt. (I'm not overpaid as a gradstudent... again.) The question is: are they persuadable to see that? Thank you for the answer. The card is still active, as I'm paying the monthly fees. (As far as they are concerned I'm still in the US...)
1 month ago - 2 answers
Best Answer
Chosen by Asker
Your credit card debt has defaulted and charged-off by now....This will stay on your US credit report for 7 years....whether the debt remains unpaid or is paid in full. If you're going to pay off old-charged-off debt anyway, then you might as well negotiate the lowest, rock bottom settlement you can possibly get, being that the negative charge-off notation is going to stay for 7 years on your credit report, regardless of whether the charge-off is paid or unpaid. ...Offer 20% and go from there. Mail them a vaguely worded statement like: I am willing to settle this matter for 20% of the original amount. Your firm must send me a written agreement on your company's letterhead that you will accept this amount as "payment in full" and that this issue will be settled. Upon receipt of this agreement, I will mail you a money order for this amount. --------------------- Again, this will not fix your credit rating...the charge-off notation is going to stay on your credit report for 7 years. You might want to check your US credit report to see if there are any outstanding credit card judgments on it....One of your creditors may have taken you to court and gotten a default judgment, which may subject you to wage garnishment should you return to the USA. - With regards to "honesty," remember, you're dealing with banks/financially institutions that don't know the meaning of the word.
by CatDad
1 month ago
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Other Answers
If you want to pay, you can usually find cheaper ways to pay than sending wire transfers. You may be able to pay at a local bank for example (depends on the credit card). If you want to settle for less, you have to be in default before you can negotiate. How would someone at the credit card company explain to their boss that they accepted pennies on the dollar for a debt that was being paid for on time? One option is to just stop paying and let them try to find you. The credit card company will just sell your debt to a collections company and forget about it. When the collections company realizes you're out of the country and have no way of collecting from you, they'll sell your debt to another collections company. Eventually, they'll give up and the statute of limitations will have expired. It will be very unlikely you'll ever get sued since it costs them money to do that and their is nothing to be gained by doing so. If collections is still active, the statute of limitations hasn't run out, and you plan to return to the US, call the collector and offer to settle. Don't tell them you're going to the US.
by Edaphos- 1 month ago