Hi there all,
I had a credit card from a bank that was charged off. The outstanding balance on this account was $7.5 k and the collection agency offered to settle for $4k.
However, I told them I wanted to pay it all and not take the settlement. They said I had 3 months to pay it but I don't have that money to pay off the debt in just 3 months. I requested and they said at the most, they could give me 6 months. I'll still be very hard pressed to pay $8k in just 6 months. They said there is no way to give me more than 6 months. If I don't pay it, the next step is legal.
Should I accept the settlement or get another job in addition to my full time one to avoid the settlement?
Is a charge-off paid in full that much better and worth it versus a chargeoff-settlement?
Thanks for any help.
handling account charge off
Hi Raylen,
I think you can talk to the original creditor about this. Request him to pull back the account from the collection agency. Generally, it is much easier to deal with the creditor. However, not all creditors agree to pull back the account and it will also depend on if the account has been sold off or not.
Once the creditor pulls back the account get a payment agreement in writing. Along with this also negotiate a "Pay for delete" (PFD) agreement on the account. With PFD the negatives get deleted. Thus, if the creditor agrees to PFD the charge-off will be removed from your credit report. (Creditors do not always agree to PFD)
The collection agency won't be able to remove the charge-off as this was entered by the creditor.
Thanks,
Aaron
charge off
Hi Raylen,
Should I accept the settlement or get another job in addition to my full time one to avoid the settlement?
I think you should try to get another part time job. Debt settlement will hurt your credit score, so it is better to avoid it if possible.
Is a charge-off paid in full that much better and worth it versus a chargeoff-settlement?
This does not make much difference.
Thanks.
charge off
Yes, debt settlement hurts your credit score as you will have to miss payments before you can settle your debts. If it is possible for you to get another job (part time) you should join it and try to pay off the debt.
Thanks,
Aaron
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