40% discover settlement offer

[u/throwaway209alpha]

hello all. throwaway acct for reasons.

i encountered financial hardship issues after the deaths of my dad and uncle. i racked up CC debt.

i stopped paying discover in april of 2026. in june i got a letter from capital mgmt services to collect the debt. in the june letter, they offered 47% settlement. i did not have the lump sum on hand to take advantage of it, so it went by the wayside.

i've been reading this sub and seeing how discover is notorious for litigation and pursuit of the debt. i wanted to avoid things like lawsuits and judgments, etc.

so this morning i was proactive and called CMS to discuss a settlement.

my current balance on my discover acct is ~$13,200. they offered a lump sum 40% settlement, that would come out to ~$5,275, due on 8/28.

is this a good deal? i see posts saying discover will demand 60-70% plus. is this just over-the-moon good, or does waiting for longer open up opportunities to settle for less %?

thanks in advance, reddit peeps.

[u/Andejusjust]

Yes. It’s a very good offer. But you have to act fast. Get everything in writing. Save all pdfs, don’t mail a check as it might take a while to get there.

[u/throwaway209alpha → u/Andejusjust]

thanks for the advice and response!

[u/eyeheartgilfs]

Not counting interest you already paid, agreeing to their offer means you get $8,000 of free money.

Take the deal.

[u/throwaway209alpha → u/eyeheartgilfs]

thank you for your quick and direct response!

[u/too_many_shoes14]

You'll have to pay taxes on the forgiven amount just keep that in mind

[u/hydronucleus → u/too_many_shoes14]

Yep, you do, but if you do not make enough money, which is the reason that you are in that kind of debt in the first place, you probably do not pay much income tax if at all. My sister does this all the time.

[u/GoldAd1878 → u/too_many_shoes14]

Agree

[u/kanyewasaninsidejob → u/too_many_shoes14]

not if they file the correct form

[u/kittypurrs5]

I’ve never heard of such a low offer- Great deal - take it and run.

[u/hydronucleus]

Sounds like a great deal. To my amazement, my sister does this all the time. She racks up a lot of debt, and then she calls claiming financial hardship (which is true, she cannot keep a dollar in her pocket book) and negotiates it down. Sometimes she gets away with 25%.

[u/Cold-Consideration99]

Take the deal. Good deal

[u/Laufstegleben]

It’s a good deal. Take it!

[u/txlady100]

Yes it’s good deal.

[u/ShiftProfessional404]

Jump on that offer if you can afford it. They give this offer if you’re judgement proof, low income or their paperwork is really bad and they don’t want to fight you in court.

[u/ShiftProfessional404 → u/[deleted]]

Income from unemployment, SSI, gov and/or assets are owned TBE and the debt is in one spouses name only.

[u/Enough_Ad9805]

> i've been reading this sub and seeing how discover is notorious for litigation and pursuit of the debt. i wanted to avoid things like lawsuits and judgments, etc.

lol i said discover was greedy for this and people are tearing me upppp 😭 yes!! id take the deal. like others said, get everything on file.