Do my accounts have to be delinquent to settle them?

[blondie]

Here's the deal, I have managed to accumulate around $30,000 in credit card debt, and want to find out if my accounts have to be delinquent before creditors will agree to settle them? I lost my job almost a year ago, and have been living on savings and credit cards. My savings is almost gone, so I won't be able to make payments for much longer. If I can get most of these companies to agree to settle for a lesser amount, I may be able to pay them off (while I still have money left) and save my good credit history. I have never paid late and don't want to start now - help, what can I do?

[mycreditgroup]

For the most part you do have to be delinquent before collectors will agree to settle them. The logic is pretty simple. If you're current and they're getting their money in full and on time, why would they agree to anything less?

That being said, you SHOULD NOT let your accounts go delinquent just for the sake of getting a settlement. The only time debt settlement is recommended (at least by us) is when you are

a) Already delinquent and the damage has been done. Then settlement works wonders
b) if you're current and due to financial reasons it's inevitable that you'll fall behind.

Debt settlement has some fantastic benefits for the right circumstances. Letting your bills fall behind when you can afford to pay them just to save a few dollars is not one of those circumstances.