I have two credit cards - both are EXTREMELY past due, one is overdrawn and one is close; and have thus affected my credit badly already. One credit card is three weeks away from writing off my debt and offered me a great settlement. I have come into a little bit of money, but not enough for both credit cards - so here are the two options i am debating between....
1) Let the one credit card write me off and pay the other credit card in full.
2) Take the settlement on the one card, in which case I would probably have to wait for the second card to offer a settlement as well and then pay that off when that settles as well.
I'm wondering which will be better for my credit. I know either way I'm in a lot of trouble with my rating but which would be LESS bad? One paid in full and one write off; or two settlements?
I'm leaning towards the one paid in full and one write off because I would be out of debt NOW, but I really would like to work on my credit rating. Any advice would be great
2006-09-19 17:08:29 · 10 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Take the settlement. How past due is the account? The older the account is the more they are willing to work with you since receiving some money is bteer then no money. But be carefull not to show too much interest in paying or they will not lower the settlement amount.
When you settle ask for a SIF letter ( settlement in full ) before you pay out any money this is a guarantee that the money you send them will satisfy the debt. If you send any money wihout a SIF letter you maybe screwing yourself if the colector is an *** and say he never told you to settle.
Settling your debt will look better then letting the company write it off since you made and attempt to pay a debt versus saying screw it and let the company take the total loss.
2006-09-19 17:16:40 · answer #1 · answered by Cyrinos 4 · 0⤊ 0⤋
regrettably that could be a very long term formerly that enterprise provides a 2nd probability. whether, in case you pay the debt if comprehensive and have in any different case sturdy credit they might think again. different agencies would desire to nonetheless provide you an account in the journey that your credit is sturdy adequate, yet a set or civil judgment will take a toll on your credit. As to the financial enterprise account stability, in maximum circumstances that funds will pass straight away in direction of paying down the debt. you will on no account see that funds back, yet you will additionally owe much less to the enterprise. a minimum of the debt is now no longer producing activity, so which you have a extra effective probability to pay it off now. in case you do choose/could re-set up credit there are some decent secured credit enjoying cards available. regularly they require a deposit as collateral against the line of credit that they make larger to you, yet will convert it right into a typical card after 6-twelve months of sturdy historic previous. i be responsive to US financial enterprise works like this.
2016-10-01 04:10:38 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Pay the one off and work with the other one. A write off will hit your credit report as a charge off. The setlement should show as the debt being paid off even though it was late. then work with the second creditor to do the same...will save your credit
2006-09-19 17:13:48 · answer #3 · answered by MeInUSA 5 · 0⤊ 0⤋
I work for a CC issuer. Take the advice on working with CCC or similar. Most lender have an agreement with them to accept whatever they work out. It will affect your credit but much less than a write off.
2006-09-19 17:18:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Contact a place like consumer credit counseling and have them negotiate a deal on both cards for you. Either way, your credit is already affected since you have gone into collections.
2006-09-19 17:12:22 · answer #5 · answered by pknutson_sws 5 · 0⤊ 1⤋
ask a credit counselor to be sure; but if they are going to write it off -why pay it off your credit is ruined for 7 yrs already, as for the other one, it is the same deal. try and get it reduced as much as possible or written off, but definitly pay them otherwise the could add fines and place judgements
2006-09-19 17:20:03 · answer #6 · answered by sevenout7 4 · 0⤊ 0⤋
i think the later would be the best way to go if i were you that is what i would do. it's better to have onr paid and only one to pay on then you won't have the hassel of which one to pay. and if you can pay more then the regular amoount it will get your balance down a bit faster.i hope this helps you.
2006-09-19 17:18:52 · answer #7 · answered by dulla mae 2 · 0⤊ 0⤋
Let's try it from another angle as well:
a) Which one is going to do me, your neighbor, your family, your co-workers the least harm? You raising the cost of our purchases because of goods being written off?
b) Unless you are willing to return everything on the written off card, what is different ethically than stealing?
I don't think the only value here is your credit rating. I think it is your integrity.
2006-09-19 17:17:10 · answer #8 · answered by Anonymous · 1⤊ 3⤋
Consolidate your cr card debts
2006-09-20 02:00:29 · answer #9 · answered by Anonymous · 0⤊ 1⤋
dude was right... listen to him... i worked collections too
2006-09-19 17:19:00 · answer #10 · answered by Anonymous · 0⤊ 0⤋