I seen that done once for a sum of 150,000 settled for 34000. then eliminated for the guy had a cc with the best deal or free after he settled he went back and got letters showing he could of settled for less. and then got it for free

So you want to take a cash advance on your available credit on card #2 and pay off card number #1 then settle on card the total debt on card #2? Did I understand that correctly? Oh boy, thats trouble.

Debt settlement should only really be used by people in legitimate financial hardship, which doesn’t really sound like your situation especially if you have qualified for a consolidation loan at a low rate like 8%. Most people with credit and debt problems really can’t qualify for a low interest loan and if they do its at a place like CitiFinancial for over 30%, so that suggests you aren’t in that bad of a financial place right now.

On the other hand if you can’t afford the credit you have right now why are you planning to take on more debt and max it out and take them for a ride?

This is about where Kevin O'Leary from the Dragons Den would come out with a big stick and want to whack you on the knuckles with it.

Settling debt is one thing if you are in a jam, but you are talking about deceptive practices, and creditors love to sue people and teach them a lesson if they catch a wiff of it

If you have a decent job and your credit is good; I would consolidate your debts and get the low interest rate while it’s available. The last thing you want to do is ruin your good credit which is hard to get these days. If you had no job then I would do what you said. If the creditors know you have a job there is no incentive for them to settle, if they can sue and garnish your wages.

Good day All

I have a debt settlement strategy and would be curious to hear what you think

I have 2 credit cards:

card#1: balance 5,000$ limit: 5,000$
card#2: balance: 17,500$ limit: 22,500$

The plan is as follows: max out the second card to pay the complete balance on the first card. Stop making payments on the second card and wait until it goes in collection, then try to settle for 25-30% of the debt value in a lump sum settlement. I have a car (on a loan) and no house or other assets, but a fairly decent salary. Overall I see it as a unlikely chance that I would be sued considering my lack of assets.

I currently have an excellent credit rating as I never missed a payment in my life. This strategy would obviously change that. I have another option to do a personal loan for the entire amount (with a co-signer) over 5 years at about 8% interest.

I'd be interrested to hear your thoughts or suggestions on this.

Cheers!
/Ed