Thread: Debt Management Plan

I'd like to get some personal views on this as well... going to follow this thread.

I've heard that debt management can look bad on your credit report, but that is all I know. The pros may outweigh the cons.

From my understanding, one cannot settle a debt on a secured loan. But in my case I had a car that was totaled that was financed through Wells Fargo. My car insurance paid off most of the loan. My crappy GAP insurance paid a portion of the remainder leaving me with a balance. Wells Fargo already sent me a 1099-C for this remaining debt that was "cancelled", even though I am still paying on it and have about $1600.00 left. It was a blessing in disguise that I totaled this car for it left me without a huge debt, but I still have this little bit left and I'm going through some financial difficulty right now. I want to settle, would I be able to do this on a secured debt since the collateral they would normally repossess is gone now? Thanks.

Way I see it... why not? It's all about negotiating with the lien holder. So it couldn't hurt to call up Wells and make them an offer, imho. Good luck and let us know what you figure out.