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The credit card companies will negotiate on the amount due, however they will generally report the write-off. It is best to negotiate on rate and work to payoff as quick as possible. This includes not using the credit cards any more. Two steps forward and one back is not good. If you want them to give you a discount you generally will need to make a lump sum one time immediate payment with an agreement to not report the write-off to the credit reporting bureau.
The Dave Ramsey approach works very well if you can keep up the discipline for a long period of time.
I never allow a client to use home equity to pay off other debt. You must first develop the discipline to live within your means and then learn how to save, invest and live below your means. It is the only way to improve your personal balance sheet.
Using home equity before the lesson is learned generally results in no equity and a return of the credit card debt as the spending pattern has not changed.
Good luck
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8 Porsche's to date, after many years of looking 1999 C2 Cab, Ocean Blue over tan Leather.
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