A
male
age
51-59,
anonymous
writes:I have about $30,000 in credit card debt. I have made minimum payments for about ten years and my interest rates are high. Now I have inherited enough money to pay off the credit cards. What steps should I take? Should I simply pay the amount owed? Or should I call a customer service rep and try to bargain down the balance in exchange for a lump sum payment? Reply to this Question
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male
reader, anonymous, writes (6 July 2008): Sorry I have to answer this even though you probably won't see this.
I have no idea what your talking about but I suggest you talk to someone who would know what they're talking about. That way you can get as much money as you can out of the inheritance.
A
female
reader, anonymous, writes (21 June 2008): i would reccomend paying the lump sum, then you know it done with. the longer you leave it, the more you'll have to pay
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A
female
reader, anonymous, writes (5 May 2008): my advice to you is pay up clear up your account.you may blow your money and party etc but when it runs out you will still have a bill.sleepless nights are priceless dont wait for the for the dreaded postman with the bills pay now party later.
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A
female
reader, Ches  +, writes (17 April 2008):
Hi there,
My friend was in the same situation last year and he just cleared off all the debt, that way its one less thing to worry about.
Hope this is of some sort of help
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A
female
reader, gost8 +, writes (2 March 2008):
You can try and call your debtors and ask them if they will take a reduced amount. I believe, however, any unpaid balance will show as a charge-off on your credit report. Make sure before you reach any agreement.
If you cannot, pay-off all the bills you possibly can. Then if you own your house and your house is not paid off, take the monthly payments you were making to the charge cards and ADD that amount to your current house payment. You will be suprised how quickly you will be debt free!
Once you have paid every thing off, including your home, put as much as you are allowed toward your retirement and in the following order:
First, your company 401(k) plan up to the amount they match. If your company does not have a 401(k) or doesnt match their plan, put the maximum allowed into a ROTH IRA, (tt your tax advisor)
Second, after you have completed the above, contribute to your 401(k) to the maximum allowed by your company.
Third, if you still want to save for retirement, open a Non-Qualified Annuity. (again tt your tax advisor)
Good Luck!
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A
male
reader, anonymous, writes (13 February 2008): I know of several people that have been in your situation.
There's no harm in asking, but make sure the amount you offer is a sensible one, say $22,500 as a starting point - 75% of what you owe.
Rather than call, write to them so that your offer is taken seriously and there's a permanent record of it. Phone calls tend to get forgotten. Explain that you have several other creditors and those that accept your offers first will be the first to be paid. If they wish to draw out any negotiation, tell them there may be insufficient money left to settle your debt with them.
In the current financial climate they may well figure that a bird in the hand is worth two in the bush.
In my experience, they will accept.
Phil
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A
male
reader, maverick +, writes (26 January 2008):
 Hello there,
You should ideally clear you debt as soon as possible. The better option is pay in a lump sum and get it clear.
I'll go into a bit of maths here but this will explain how companies make their money out of you.
As an example - You are in debt of $100. The interest is typically 15% per month. The monthly minimum they will let you pay is $10.
In January your debt increases by 15% so now its $115. But you pay the minimum of £10. So your debt is now $105. Next in February you debt goes up by 15% again so its $132.25, but you pay the minimum of $10, so you debt at the end of February is $122.25... this goes on and on...
This is called "perpetual debt" and its a way for companies and banks to count on a steady flow of cash from you into their funds and investments.
It is best to get out of this vicious cycle as soon as possible. One thing to be wary of in the UK there are some (unfair) penalty charges for paying of loans and mortgages early, not sure what it's like in the US.
Good luck.
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A
female
reader, anonymous, writes (14 January 2008): If you have had loans from professional companies, they will usually offer you a settlement figure which will be less than what you actually owe. You should be able to discuss this without the help of a third party.
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