Negotiating reduced pay off with Discover

I’m one of those lurkers that has learned a lot from the more experienced people on this list. I am looking for your assistance with my brother’s finances which I have taken over.

My brother lost his job on Friday and the prospects of find a new one soon are grim. Right now he and his wife have a Discover card balance of a little over $4,000 at 20% interest. This interest rate was already negotiated down from 28% back in June. Anyway, we are considering telling Discover that my brother is considering bankruptcy and would like to negotiate a payoff of the remaining amount or risk not being paid at all. We are wanting to see if we can pay $2,000 on this account and have them either close the account or let them just write it off and keep the card (which I doubt they will do). The $2,000 is coming from my other brother, but he cannot afford the full amount which is why we thought we could negotiate. The reason we want to pay this off is to reduce their monthly payments and not have to pay the ridiculously high interest rate any longer.

Here’s my question, if we do this, will this affect his or his wife’s credit score? Will it show up as a bad account?

Thanks for any help you can provide.

I got them down to 10% by being ornery and obstinate. I closed the card and didn’t give a hoot about credit ratings. One of their folks told me if I stopped paying them within 90 days they would negotiate. So I stopped paying them! I owed 11000. Its now down to 5500 at 10%. When they tried to hit me with late fees and penalties I hung up as many times as it took to get them to play ball. All that went away. They will only give you a one year deal at a time so you have to keep a calendar of when the deal runs out to renegotiate another year. They are a PREDATORY lending company so be vigilant and strong.

I am mostly a lurker here as well, but would like any further information you can give regarding your settlement. Did they make the offer first? Was it all handled over the phone?

We have an 18k balance with Chase; had to stop paying over 4 months ago and they call multiple times a day, 6 days a week. We stopped answering when they call. This was a business (LLC) cc, and we cannot pay it. I want to write a letter explaining our inability to pay as well as what our circumstances are (husband has MS and cannot perform this physically demanding work; it’s also only a warm weather business). I think it’s time we communicated before they turn it over to a debt collector. The cc is in the business name, but I guess it is also in my husband’s name since his credit is already affected – other cc’s are reducing limits or closing accounts.