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Should I try to settle the debt with $9000?

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I have 5 credit cards. I owe $24,000 on the credit cards. I have stopped making payments on the credit cards since the last 2 years. I have set up a payment arrangement with a debt collection agency from Hartford, Alabama. I'm paying $30 to the collection agency for the last 1.5 years. In the meanwhile, I have saved $9,000. What should I do at this situation? Should I settle the debt? Should I file bankruptcy?

You are paying $30 a month to a collection agency on the $24,000 debt? Do you have the $9000 in like a savings account? Filing bankruptcy is something that I would only recommend as a last resort. You did not state what you make monthly, so know that can be a factor in filing bankruptcy. If you have $9,000 saved up, you can knock a chunk out of what you owe. If you knock down the debt some, the cc companies may look more favorable in working out a settlement with you. But know, what you do not pay to the cc companies, unless it has changed, you usually have to claim that amount on your taxes. Also if you choose to try to settle, and the accept, when you pay, make sure that they mark the account as paid in full. Good luck.

Sub: #1 posted on Fri, 10/04/2013 - 03:54

2nband 2nband
(Posts: 2279 | Credits: 469.2)

You are not bankrupt if you have $9000 in the bank.

Why do you have so much money in the bank paying almost no interest when your debts are accruing up to 29% in in interest??

Sub: #2 posted on Fri, 10/04/2013 - 04:10

Moderators Cum Industry Expert
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