Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The principle is that if you pay in full, your immediate cash payment is worth more to the creditor than having them wait for you to pay monthly, therefore your payment is worth more, so they may offer you a discount. Nothing unscrupulous about that concept.
The principle is that if you pay in full, your immediate cash payment is worth more to the creditor than having them wait for you to pay monthly, therefore your payment is worth more, so they may offer you a discount. Nothing unscrupulous about that concept.
But isn't a balance a balance of principle? Meaning no interest in the balance except what is included for that daily accrued interest, hence knwoing the full payoff amount when you decide to pay in full. Why be offered a discount on something that the bank is entitled to anyway??? If you owe something, you pay it. The longer you take to pay, the bigger the interest charge...simple. If you pay sooner, interest saved....period. Why be entitled to a discount for something the bank is entitled to anyway. Am I missing something here???????? Get the final payoff amt and be happy you are saving interest. Be happy that you have credit to buy the stuff you didn't afford at the time but are able to pay off already.
I'm gonna try and buy a car for $25K at 6% for 5 years, but after 2 years I am gonna pay it off and expect to get that car for only $22K because I deserve it!
On the other hand if the creditor receives the cash quicker, they have more financial assets, so it is more valuable to them. Everybody can still be happy too.
On the other hand if the creditor receives the cash quicker, they have more financial assets, so it is more valuable to them. Everybody can still be happy too.
...and they will report the account as "settled" or "failure to pay in full", which will have a severe impact on your credit score for about the next 4 years and will remain on your report for 7. So, by all means, if you have no use of your credit, negotiate a settlement. You are absolutely right that the bank would be willing to waive part of the money owed to get a full payment today, but don't think they won't let all the other banks know that's how it went down.
I have heard that if you want to pay off a card, they often let you pay it off at maybe 60%, so you would get 40% off. Maybe even half, but that might be only if you owe them the bill a while.
It would be nice if that wasn't the case. I tend to pay my credit cards off every month. I wish I could just pay 60% of the bill every month and have them write the rest off.
? The main card I use is Chase, and I almost always pay the full balance every month, which I do by clicking on the "pay full balance" radio button.
I had to 'enroll my checking' account in order to setup pay account. Once I did that, my options are 'Pay Statement Balance', 'Pay Current Balance', Pay Minimum', Pay Other.. So I guess 'Pay Statement balance' would be equivalent to your 'Pay full balance'.
1st, The credit card company will negotiate if you have had many late payments.
If you have always been on time they will not budge.
If they accept less than the full balance as payment in full they will send a 1099 in as Cancellation of Debt and you have to pay tax on the forgiven amount.
I would try to get all late fees if you have any removed.
I don't think this will count as Cancellation of Debt.
As far as any moral problems in negotiating with the bank that is absurd !!!!!!!
Look at the banks behavior :
a.) Miss a payment or 2 and your rate increases to 25%.
b.)Bank lowers your credit limit and now you are over the limit
and they hit you with over limit fees.(Obama killed that
trick though).
c.)Allow the card to go $1 over the limit and charge a 39 dollar
over limit fee.Obama killed that trick too though).
d.)Monitors your credit score and even if every payment has
been made on time but your credit score has dropped raise
your interest rate.
How nasty the banks have behaved!!
You know it has to be bad when the gov has to make the bank practices illegal.
Not paying a small business or ethical business the full amount due is immoral, but this is quite different.
I had to 'enroll my checking' account in order to setup pay account. Once I did that, my options are 'Pay Statement Balance', 'Pay Current Balance', Pay Minimum', Pay Other.. So I guess 'Pay Statement balance' would be equivalent to your 'Pay full balance'.
Pay current balance is the full amount.
The statement balance will not reflect any payments or charges after the statement cutoff date.
I had to 'enroll my checking' account in order to setup pay account. Once I did that, my options are 'Pay Statement Balance', 'Pay Current Balance', Pay Minimum', Pay Other.. So I guess 'Pay Statement balance' would be equivalent to your 'Pay full balance'.
Right--pay current balance or whatever it is. I didn't remember the exact wording. Whatever option has the full amount you owe next to it. ;-)
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
