I have CC debt, do I need to negotiate before receiving inheritance?
Hello, I have about 10k owed to Chase and $5k owed to discover. I’m based in the US. These are from relying on CC when low income and making poor choices, and I’ve completely stopped using CC and got a better job over the last year. Before that, I panicked and thought I’d just let them go to collections so I stopped making payments and then both closed my cards - then I realized that’s not good so they put me on direct payment plans that I’ve been paying for the last six months. So the cards are closed, my credit took a big hit, and still have debt.
Now I’m due to get an inheritance soon that I can use to fully pay off my debts and get a fresh start, but I’ve heard that you might be able to negotiate a smaller payment to wipe out the debt in full. That would be great so I have more leftover to put into actual savings. My big question is whether I need to call and negotiate with these banks BEFORE depositing my check, or if it’s possible to deposit it in a different new bank while doing my negotiations. Because right now it’s true that I’m living paycheck to paycheck so hopefully the banks will work with me, but if the check arrives before I make a deal, how bad is it for me to deposit it so I have more cash to work with?
And if I negotiate before cashing the check, how do I then go about paying them? Do they immediately want a payment that day, or do they set something up where I can schedule a payment transfer? My friend advised me that I should tell Chase a family member is helping me pay off debt if I can work out a deal - which is true from a certain point of view - but how much will they look into the situation?
Thanks for any help.