citibank offering settlement on 2 accts over 20k each.Is it ok?
I'm not sure if this is the right place to post this but I'll give it a shot. I have 2 Citibank credit cards that have balances over $20k each (I know it's bad [IMG] http://www.debtorboards.com/ and I am a few months late on paying anything on either one of them. Citi has sent me settlement letters on both accounts offering to settle for approx. 25% of the total balance (approx $5k on each of them). I spoke with them over the weekend to find out the details of settling the one account and the problem is that they want the $5k paid off within 3 months and there's no way that I can do that. They want a decision by tomorrow (4/19) or they are going to turn the account over to an attorney in my state and I definitely don't want that. They did offer to let me pay off the entire $20k balance over 4 years but the monthly payment on that is almost $500/month and I can't afford that either.
They're going to want a decision on the other account next month and I'm sure they'll want that one paid off within 3 months as well if I decide to settle.
I'm not really sure what I should do as I really want to pay my debts but I just don't have the money right now and I don't want my credit rating to be completely ruined. Any help/advice is greatly appreciated as I really don't know what to do at this point.