(((Belle))), I know where your coming from. We are not in the position right now to negotiate. But if we were I would pay the 2 grand and be done with it.
I figure our credit is so messed up right now it is going to take at least that long to get it good again.
I guess the bigger question is what are you planning on doing in the next 7 - 10 years? If your planning on putting anything on credit in that time frame than you might want to go with the payments. But then again if your only able to make minimum payments on your balance it will take you the rest of your life plus some to pay all that back.
Good Luck

Why pay the 2 grand if your credit's going to still be bad? Why not tell them you can't pay, don't pay and let 'em write it off. Your credit will still be bad, one way or the other. Bad credit is bad credit. Might as well keep your money. You can always have your telephone number changed; that'll eliminate the hassles. Been there, done it before. If you can't afford to make the payments, you can't afford it. They can't get blood from a turnip!

Know where you are at, you will survive this - make a decision that is best for you. Make a well informed decision - not one based on intimidation or fear.
I will share my experience - I went bankrupt five years ago. Today my credit is again looking good. Yes, the bankruptcy is there but I re-established credit with a new card (at a low APR)by paying bills in a timely manner. (I threw away offers all the time because once you have gone bankrupt they come at you in full force knowing you can not go bankrupt again for many years. I told myself to reject any company that was going to have me pay a yearly fee. Ha! I should pay them to get in debt. NO way.)
There are different elements that are viewed on our credit report such as never have a 1/3 of the cards value as debt. Never be late with a payment.
Why should you give a company $2,000 and have the rest of the debt charged as income? You want to pay income tax on debt? If you give them $2000 it should be a settlement they can write off the the $9,000.
You can file a chapter 13 and make a repayment plan. If your finances are really bad you can go into a chapter 7. Do not be scared by the big bugaboo of the credit report will look bad.
Bankruptcy is for a fresh start. If you grow and learn through it, it is worth the freedom. You have to look at the whole picture, all assets. Also look at what your state allows. Each state has its own rules regarding bankruptcy. If you decide to go bankrupt you must execute it properly and plan it.
If you want to settle with the company fine - but like Kirby1 said they can not get blood from a turnip. Know this they are not doing you any favors they are intimidating you by "ooh your credit report will look bad". They didn't tell you they get to write off debts. They didn't tell you they sell debts to other companies who actually make a living coming after you. They, the person on the other end of that phone, are out for one thing and that is too get as much money for their company as they can. Meanwhile they have made money off you for years by charging interest. Right now I guarantee they already have reported to the credit bureaus that you are late or else you would not have had the phone conversation with their rep. Look at the whole picture, your assets, your incomes, your total debts (not just that card) sit down take a breath, sip some water and be calm as you examine all the angles.
By the way you can make them an offer - you can be in control of this - all will be well. You're not alone, I am rooting for you. Best to you.

Have you looked into a credit counseling service? They will deal with the creditors and set up a manageable payment plan. It may be another alternative. It's a tough decision but it couldn't hurt to sit down and talk with one to see if it's something you are interested in.

Don't mean to hijack your thread Belle but I had a question that maybe the answer will help you as well.
Do any of you know - once you can't pay and the phone calls are coming, after a while whats next? What is there next step.
Can and will they take you to court? Garnish your wages?

I was so embarrassed yesterday when my sis called to give me a message from one of our creditors. They actually called her house!! We have been avoiding the calls because we can't pay. I tried before to call one of them and talk with them about lowering our monthly payment. Told them how much we could pay and they said it wasn't enough. I replied okay sorry that is all I can do. That is one of the reasons I don't answer the phone or call them. All they want is the money. They don't care about your sob story or the fact you need to feed your family.
Yes we screwed up, ran up bills we couldn't pay. We admit we made a mistake. But my family comes first. We have to have a roof over our head and food to eat. We have learned our lesson. We hope and pray we will never ever have a need or get another credit card.
To me credit cards are for rich people - (or people that are much more disciplined than we are) the ones that use it for convenience and pay it off each time the bill comes in.
Just wondering what else they can and will do. Anybody?

Thanks

wow that sounds rough. I made arrangements to have no interest for one year and pay half the payment. I am back to regular payments now and they restored my card. I owe way more than you. But it is all relative. I have had bad credit and did restore it also, you just got to keep paying the best you can.

I think collection laws vary by state. Here, I've found that the creditors can't garnish your wages, but they can make telephone calls from 8am - 9pm, 7 days a week. They can report the delinquency on your credit report, acquire a judgment on your credit report, and that's about it. The judgment can stay on your credit report for up to 10 years, maybe longer, providing the creditor can continue to validate the debt. I think anyone interested in what the collection law is in their state should ask a lawyer who specializes in debt collections or search the web for what the law is in their respective state.

A long time ago, I had a credit card I could pay, and they had a department that would work with people who couldn't make the entire minimum payment. At the time, I couldn't afford to pay anything, but I'm glad they have resources to work with people who can pay something.

I have worked in a collection agency for many years and would not recommend debt consolidation companies to anyone, especially if you have accounts in collection agencies. What happens is that a lot of collection agencies do not accept payments from the debt consolidation companies, or they make your payments late.. It really can be a big mess

Another thing I forgot to mention in my previous response is collectors get paid on a commission basis in accordance with the accounts they collect. Some get paid a base salary plus commission.

Just my two cents worth--
I called my credit card companies and 3 out of the 5 reduced the interest, stopped the over limit fees, and late fees, therefore reducing the monthly expense. It all adds up. THe other companies referred me to credit counselors-ya, ok--. Trust me on this one, even with crummy credit, you can still buy a car, a house, and get amlost daily cc applications in the mail. What is bad credit anyway? It seems to me that most people are really struggeling these days, and this might just be 'normal' afterall. I don't know, just a thought. GOOD LUCK TO YA!

Another thing to consider. Yes, it will take 7-10 years to clean things up, once the clock starts ticking. But be aware that anytime you make any new payment or accept an installment arrangement, the clock get set back. In other words, it can be 6 years since the issuing creditor wrote off the debt and sold it. If you accept a collection agencies agreement to make a payment, you just set the clock starts ticking at zero, and you are back at 7-10 years.

I am in the same position. I just figure I'm gonna be in a bad position for several years and learn from my mistakes.

Thanks for all the help. When I talked to the rep he said if I didn't do anything, they could garnish from any wages I have coming in. That scared me. I think I'm going to pay the 2 grand and have it done with. It will be worth just not having the hassle anymore. Good Luck to everyone.