2007-02-22 02:09:06 · 8 answers · asked by adamsz28 1 in Business & Finance ➔ Personal Finance
Helo Adamsz, Do U like having bad rep? Debt collectors caling?
2007-02-22 03:01:12 · answer #1 · answered by loidfish 4 · 2⤊ 0⤋
If you have the money or assets to settle it it is better to do so. Even if this means you have to sell things you own (extra TVs, furniture, etc) or cut back on things you don't really need (cable, cell phones, dining out, alcohol, expensive clothing (as in anything not bought at goodwill), etc) it will be better for your credit as the issue will at least be resolved. While it'll still be on your credit report, a settled debt is much better then an unpaid debt.
You should also look at your lifestyle and income and figure out how you go into a situation where this debt is being offered to be settled as opposed to being paid in full. Budgeting is important and everyone should have a budget.
If you don't have the means to pay the debt then you are probably on the verge of being bankrupt and should consult with a lawyer.
2007-02-22 03:03:03 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It depends how deep you are in debt and how bad your credit already is. When you settle a debt, it shows on your credit report that you settled it for less than what was owed. If your credit is already in need of repair, you can't possibly hurt it any worse unless you still owed. I just went through this a few months back. We settled and paid everything and now all we have to do is build the credit back up. Also when you settle, you have to claim the amount not paid (but you were supposed to) as income for your taxes.
2007-02-22 02:18:01 · answer #3 · answered by Candi H 4 · 1⤊ 0⤋
Settle the debt asap so that the late fees and compound interest don't continue. Speak with the debtor and work out something that you can handle.
A month after you pay the first installment, it makes you current. You can call the credit bureau and have the Settlement status taken off of your credit report.
2007-02-22 02:58:26 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I have a question for you.
If you loan me $100, would you like me to pay it back to you or not pay it at all?
You borrowed the money. You need to be responsible and pay it back. For one thing, it's just morally right. For another, by not paying it, you are screwing up your credit rating and your life for a long long time. So ask yourself this. Is your method of not paying it working for you? You've probably got debt collectors hounding you. If you're deep in debt, they can sue you, get a judgement and garnish your wages, go after your assets, your bank accounts, etc.
Stop using your credit cards and running up even more debt and start paying it off. Always pay more than the minimum payment and always make the payments on time and the collection agencies will stop calling.
2007-02-22 02:27:48 · answer #5 · answered by Faye H 6 · 2⤊ 0⤋
settle it, as it catches up with you later in life one way or another.Sometimes your debt goes to small claims court where you will have to pay court costs also.Suppose a small sum paid each week keeps the wolves from the door. It could stop you from getting a mortgage in the near future.good luck.
2007-02-22 02:33:27 · answer #6 · answered by mother 3 · 0⤊ 0⤋
Settle it. Debt collectors can come after you if you don't, and you'll have a bad credit record.
2007-02-22 02:17:08 · answer #7 · answered by Clarke . 3 · 0⤊ 2⤋
SETTLE!
2007-02-22 02:39:16 · answer #8 · answered by L 3 · 0⤊ 1⤋