I need some advice about an MCM credit account.?

Question

I have an account with MCM for $1550. Now they told me I can settle with them for $930 all at once or I can pay the $930 within 3 months. Now, I am thinking like this if I settle for the $930 then I will be saving around $600. As of right now, things will be really tight if I try and settle for that $930. I was just thinking about waiting to pay it off. But I wouldnt wanna have that sit in the back of my mind if they take legal action or something like that.

Please only positive comments and concerns only. I dont need to hear any negative advice.

Thanks for taking the time out to read my question.

I was also thinking of just waiting a few months and save like $600 at once and then call them and see if they are willing to settle at that amount. What do you think?

Answer 1

If you can save $600, I say go for it, as long as it doesn't cause you to be late or miss payments on other bills. Whatever agreement you make with MCM, you need to get it in writing. And once you have paid them, you need to receive a receipt from them saying that your account has been paid in full. They also need to report this to the credit reporting agencies for you.

Answer 2

Take the settlement. But don't pay a cent till you get it in writing and DO NOT give them access to your bank account.

You will probably get a 1099 for the forgiven amount and will have to pay income tax on it but the taxes on $600 are a lot less than paying the whole amount.

You might even try counter-offering $855 in three payments of $285. They may just accept it.

In any case, don't let this sit on your credit report. They can sue you. And more collection agencies are going to small claims.