If you’re struggling with credit card debt, you might have heard about Discover’s 60/60 debt settlement plan. This unique option has been a lifeline for some consumers facing financial hardship. In this blog post, we’ll explore the details of the 60/60 plan, share reviews and experiences from various sources, and provide insight into whether this plan is still available.
What is Discover’s 60/60 Debt Settlement Plan?
Discover’s 60/60 plan offers a way to reduce and manage debt for consumers in severe financial distress. The plan involves two key components:
- Debt Reduction: The outstanding balance is reduced to 60% of the original amount owed.
- Extended Repayment Period: The reduced balance can be paid off over 60 months (5 years).
This plan is designed to help individuals who are committed to finding a solution to their debt problems and can demonstrate financial hardship.
Reviews and Experiences
1. SoloSuit Blog Post: The SoloSuit blog highlights that the 60/60 plan is typically offered to individuals who express a genuine willingness to resolve their debt issues with Discover. By reducing the debt to 60% of the balance and allowing 60 monthly payments, the plan provides significant relief to those in deep financial hardship.
2. Consumer Recovery Network Article: According to the Consumer Recovery Network, Discover is one of the few creditors offering a 60/60 plan. This resource mentions that some cardholders have benefited from this plan, but there are reports that Discover may no longer offer it as frequently. The article emphasizes the importance of communication with Discover to explore available options.
3. Reddit User Experience: A Reddit user shared their positive experience with Discover, where they were offered a 1% APR for five years to pay off their balance after expressing financial hardship. This thread garnered many comments praising Discover’s customer service and their willingness to work with borrowers facing difficulties.
4. MyFICO Forums Post: In the MyFICO forums, a user considering bankruptcy wanted to settle with Discover first. They found settling other debts manageable but struggled to get a settlement offer from Discover. This highlights that while Discover can be flexible, the availability of settlement options like the 60/60 plan may depend on individual circumstances and persistence in negotiations.
Is the 60/60 Plan Still Available?
There are mixed reports about the current availability of Discover’s 60/60 plan. While some sources suggest it may no longer be widely offered, others share recent experiences of favorable terms being provided under certain conditions. The best approach is to contact Discover directly, explain your financial situation, and inquire about possible debt relief options.
Tips for Negotiating with Discover
- Be Honest and Transparent: Clearly explain your financial hardship and willingness to find a solution.
- Document Everything: Keep records of all communications and offers.
- Seek Professional Advice: Consider consulting a debt counselor or financial advisor for guidance.
- Persist: If the initial response is not favorable, continue to follow up and explore different options.
Conclusion
Discover’s 60/60 debt settlement plan has been a valuable option for some consumers facing financial hardship. While there are varying reports on its current availability, many have praised Discover’s customer service and willingness to assist borrowers. If you are struggling with debt, reaching out to Discover and exploring all available options is a crucial first step towards financial recovery.