Hi Money Minder,
I messed up big time and lost my job in early 2023. I’ve been pretty much broke ever since. I’m not a US citizen and was on my H1B visa. After failing to find a job, I left the US in 2023. Now I’m thinking about returning in a few years, but I need to get my debt sorted out first. I don’t have any money, but my family is willing to help me out.
So, what are my options here? I’ve seen people on this sub talking about settling their debts for as low as 30%. Is that realistic for me too? And if I do settle, will it make it harder for me to find a job? Besides the bad credit mark for 7 years, what other consequences should I watch out for?
I actually called Discover today about settling a $11,815 debt, and they offered to settle for 60%. I told them I only have $3,500 and they said 60% was the lowest they could go. Do you think it’s worth calling them back in a few weeks to try and negotiate a better deal?
Farewell,
Debt Dilemma Guy
Response from THE MONEY MINDER:
Hello There,
I am sorry to hear about your current situation with unemployment and debt. It’s understandable that this is a stressful time, but it’s great that you are looking to take proactive steps to address your financial obligations and plan for your future. In terms of settling your debt, it’s definitely possible to negotiate with creditors for a lower settlement amount, as you mentioned some people have been successful in settling for as low as 30%. Given your circumstances, reaching out to creditors to explain your situation and offer a lump sum settlement based on what you can afford is a practical approach.
It’s important to keep in mind that settling a debt for less than the full amount can have some negative impacts, such as a negative mark on your credit report for seven years, which may affect your ability to secure credit in the future. However, if handling your debt responsibly and making efforts to settle it demonstrates your commitment to financial responsibility, it may not impact your ability to find a job significantly.
As for the offer from Discover to settle for 60%, it might be worthwhile to consider saving up a bit more and approaching them again with a counteroffer. It’s possible that they may be willing to negotiate further if you can provide a lump sum payment within a certain timeframe. Being persistent, polite, and professional in your communication can also work in your favor when negotiating debt settlements.
In the meantime, it may be helpful to create a budget with the assistance of your family to manage your finances effectively and work towards accumulating the funds needed for settling your debts. Seeking financial counseling or professional advice could also provide you with additional strategies for managing your situation.
Remember, financial challenges can be daunting, but with determination and a clear plan in place, you can work towards resolving your debt and building a more stable financial foundation for yourself. Please feel free to reach out if you have any further questions or need guidance. Stay strong, stay focused, and take one step at a time towards securing your financial future.
Take care,
THE MONEY MINDER
Leave feedback about this