I owed $5500 to a credit card. I was trying to pay it off in full, but between high interest rates (22%), and the fact that I am over the limit ($1500 over), i decided to settle. They offered me a settlement of $2600, which I have to pay over a 6 month period. Now, upon looking on yahoo answers, everyone is saying that settling is the same as not paying it at all. Should I continue to pay on my settlement? If it is going to look the same overall, then there is no need to keep paying, however I am trying to fix my credit as best I can. Any advice would be appreciated!!
2007-07-08 05:05:15 · 4 answers · asked by Anonymous in Business & Finance ➔ Credit
Ask yourself this: At 22% interest, can you pay it off, EVER?...if you could, wouldn't you have done that to start with?
Yes, it will show as a settled account, but if it didn't go into collections, it won't hurt your credit near as much!
No, it is NOT the same as not paying it at all.
Take the settlement...it's a very, very good deal. If you accepted the settlement, and stop paying on it, they have the right to go back RETROACTIVELY and tack on the interest, and giving you credit for what you paid.
2007-07-08 05:13:31 · answer #1 · answered by Expert8675309 7 · 2⤊ 0⤋
since you are paying less than full amount due, it will still affect your credit rating. But hopefully they won't give the balance to a collection agency who will harrass you forever. Try and get that guarantee in writing that you will never have to pay the other 2900. Your credit make take a big hit for years
2007-07-08 05:11:40 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Get them on the phone. Tell them you are going to file bankruptcy and not pay anything else unless they agree to one condition IN WRITING; to remove the item from your credit report when paid. If they want the money bad enough they will agree.
You are right - it isn't gonna do you much good as far as your credit is concerned - when you pay it off. Not unless you get them to agree to remove it.
good luck!
2007-07-08 05:21:02 · answer #3 · answered by mphsblue 3 · 1⤊ 1⤋
If you don't pay as agreed they can cancel your offer and take you to court and garnish your pay for the entire amount plus court cost.
2007-07-08 05:12:55 · answer #4 · answered by shipwreck 7 · 0⤊ 0⤋