Debt settlement question?

[Barney Rocks]

Does anyone know details about debt settlement? A friend of mine is thinking about settling a credit card debt (Chase bank). She has been told that she will have trouble (that they will not want to settle for a good amount) because part of the debt was a cash advance. Does anyone know if this is true?

I have looked on the web and see lots of companies that talk about settlement of credit card debt--they never mention it making any difference whether the debt was charges, advances, or balance transfers.

Also, I have heard that you get the best deal if the account is around 6 months past due. Her account is 3 months due. Should she wait? Will she get a better deal at 4 months, or 5 months than at 3 months?

And--how long will a settlement stay on a credit report? I have heard that it can stay on as long as a bankruptcy (10 years) but other web sites say only 7 years?

She is not very adept at looking into things--and was advised to get a settlement attorney. But she knows so little that she is afraid a settlement attorney will REALLY take advantage of her. Plus she can hardly afford the fees...so hopefully I can find some answers for her.

Thanks.

[Vincardog]

1. Credit report info stays as long as the bureau wants it to except Bankrupt

disapears after 7 years

[Barney Rocks]

2. OK that is

very good information! So it is entirely up to them. Good to know (probably bad for most of us consumers though).

[Media_Lies_Daily]

3. Give your friend this link...

<http://www.bondnbotes.com/bankruptcy/page2.html>

...and ask her to take the time to carefully read the information.

This site will explain just about everything your friend will need to know. I also recommend that he talk to an attorney that specializes in this field. The first visit is generally free, but make sure that your friend asks first before scheduling a visit.

As to your specific question, like you, I've personally never heard of credit card debt being divided into cash advances AND purchases. The total outstanding balance is what you owe to the credit card company unless you can work out a deal.

[Demobrat]

4. Late and overlimit fees and interest are in there too.

Which is why CC companies, or rather the collection agencies to whom they sell your account for ten cents on the dollar, are sometimes willing to settle for 50% or so. The won't let you off the hook on purchases and cash advances, but when people get behind those fees can really add up.

[Barney Rocks]

6. you are right,

I hadn't really thought of it--but a good portion of the debt is probably interest and fees--no wonder they can write off a good bit of it and still come out ahead!

Once again, thanks for all the help--this friend is a single mother of two and she really needed some help--she doesn't have the connections or time to really research it and is very afraid of making the wrong decision. I didn't know anything about this area myself, so I am very glad that I can take the insight of the fabulous DUer's back to her. (BTW, she is a Democrat so maybe someday she will end up here herself I have told her it is a great place to be!)

[Barney Rocks]

5. thanks!

I am glad there are so many knowledgeable people here! I am sending her the link right now.

[Barney Rocks]

7. Thank you for the link,

I appreciate your knowledge very much. Thanks for sharing with me.