Does settling a debt look bad on my credit report? Or should I pay the full amount over 5 years?
Card company said I could pay the full amount within 5 years with no late charges, and a lower interest rate. It has not gone into collections yet but shows "derogatory" on credit report.
I forgot to mention that I asked them to remove it from my credit report after it’s paid off, but they said they couldn’t since I’m not paying in full but it will say "settled for lower amount". Is that ok?
Posted September 8th, 2010 in Debt Settlement. Tagged: card company, collections, credit report, interest rate.
If your credit report says "settled for a lower amount", it’s still a negative hit on your credit report and it will low your score. They are not doing you any favors.
The TRUTH is they can do whatever they want with your credit report listing, as long as it’s "fair and accurate".
There is nothing in the law, or in the creditor/credit bureau agreement that prevents a creditor from deleting any entry they placed. Therefore, your creditor is strong arming you into paying this bill in full.
Just give them a counter offer….if they agree to remove this from your history, you will pay what you settled on. Otherwise they can stuff it!
Remember, the purpose of your paying this debt is to fix your credit. It makes absolutely no sense to pay it, and still have bad credit.
September 8th, 2010 at 9:59 amIf they made that kind of offer, I would take it. Anytime your accounts show paid as agreed it’s good for your credit.
You do not want this account to go to collections. Collections are very bad for your credit and stay on your report for 7-years after they are paid.
September 8th, 2010 at 9:59 amBad credit is one of the worst problems to have… however there exists a solution.
I will hereby talk from my personal experience.
I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is a straight to the point ebook with question and answer I found :
http://umgarticles.atspace.com/debt-consolidation.htm
if it helps kindly remember me in your voting!.. cheers!
September 8th, 2010 at 9:59 am