How to initiate a credit card settlement?

[Chevytuff19]

What is the name of your state? TX

First off, let me say hello as this is my first post here. This forum is awesome, lots of good info here.

Well, my question is how do you go about starting a settlement with your credit card company? I have $4000 in credit card debt and since I am in college I can't pay it off. I have been paying as much as I can, but it keeps going up because I use it for gas, food, etc.

So can someone please tell me how to do a settlement and how much I should expect to pay up front?

Thanks in advance,
Wes

 

[bigun]

First thing you do, is quit using the card.
Secondly, don't ruin your credit over $4K. The minimum payment is likely just 2% of the balance. Stop using the card and make your minimums until you graduate and get a job and then, pay it off.

 

[wert]

Your post makes me wonder what you are studying in college. I hope it has nothing to do with the financial world.
Ditto on stop using the card.
They won't settle with you while you are paying on it and still using it. Credit card companies settle AFTER the account does deliquent, usually after they write it off-which is after it creates problems with your credit.
Get a night job and get the thing paid off-after you quit using it...

 

[Chevytuff19]

Well I get $200 a week from working part time. Figure in at least $150-175 a month for gas, $150-200 for food, and about another $150 for groceries and miscellaneous. So that is at least $450 a month. Plus, there are always unexpected expenses.

So I would have to quit paying my credit card first before I get a settlement? I guess I thought wrong. I thought they would just let you "settle" your bill for less, at least that is what a friend of mine who is an accountant told me. Well I guess I will keep chopping away at the bill slowly but surely.

Thanks,
Wes

 

[Ladynred]

$150 - $200 a month for food PLUS $200/month for groceries ??? Sounds to me like you need to stop eating out and brown bag it. For single student, you should be able to have lunch every day for $200/mo in groceries !