how much should i offer to settle a debt?
i had a lease with 2 other people about 5 years ago. the total debt amount is about 5200 (1200 of that interest). how much should i offer to settle the debt and remove it from my credit report? should i say remove the interest of 1200 leaving 4000, divide it by 3 (3 of us on lease) and offer 50-70% of that – 650-900 bucks to get the debt removed off ‘my’ record. i don’t care about the other 2 people.
The whole $5200 is on your credit report… it looks like "they" didn’t care about the fact that originally there was 3 of you on the lease.
At this point you could probably offer about 30% to settle the debt.
February 6th, 2010 at 10:00 pmGet everything in writing before you send them a Money Order for the agreed amount.
13222
February 6th, 2010 at 10:00 pmThis will come off your credit report anyway in 2 years as 7 years is the max. amount if can stay…Unless there is an urgent reason to pay this debt off, like:
1) You are applying for a new mortgage, loan or apartment and the creditor is insisting that all defaulted items be paid off
2) There is a confirmed lawsuit pending on the debt
….then it’s often best to take a "Don’t Ask/Don’t Tell" approach…just sit tight and let the charge-off fall off your credit report naturally.
Paying off an old debt like this won’t necessarily remove it from your credit report. They might update it to "Paid" but that’s all.
February 6th, 2010 at 10:00 pm==================
If you decide to pay anyway:
- Get all terms of any settlement deal you reach with debt collectors IN WRITING BEFORE you give them your money. This letter should state the settlement amount and that the account will be “paid in full” upon receipt of this amount from you. Keep the letter in a safe place. Never accept settlement deals over the phone that are not backed up in written terms. If you don’t, the debt collectors will deny that any settlement was ever made once they get your “settlement” money and will come back demanding more money from you.
- NEVER give out your checking account/bank routing numbers to debt collectors for making electronic debit payments. This is like giving the keys to your front door to a burglar. Once they have this info they can attempt to withdraw any amount from your checking account at any time. Pay only via USPS money orders.