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Posted: Sat Jan 13, 2007 6:39 pm

I need to know if it is better to pay a charged off account in full at a reduced price or if I should pay the full amount....and if I pay the full amount of debt would it look better on my credit report?

Posted: Sat Jan 13, 2007 7:12 pm

mshayna -

Welcome to the site!

I am not a credit expert, but I do know that when I have settled debt in the past, it showed up on my credit report as "settled for less than amount owed", rather than "paid in full" or "paid as agreed".

I don't know how that reflects on your report in terms of your credit score, but I'm sure others here will post their take on your situation. You'll have much more information by tomorrow evening if you keep watching this thread. Smile

Posted: Tue Jan 16, 2007 4:17 am

you have the ball in your court right now, call your creditor or the collection agency and try to negotiate payment for deletion. First I would negotiate a reduced "paid in full" amount minus all their bogus fees, then explain to them that you agree to pay this amount as soon as you get a letter from them agreeing to remove it totally from your credit report. A chargeoff is one of the worst things to have on your credit report. These people want their money, it doesn't matter to them what is on your report. With a little negotiation, and the promise of a payment from you they are usually more than willing to do this. But whatever you do do not pay them until you get this agreement in writing. Once you do all this you must follow up with the Credit Bureaus to ensure this has been removed.

Posted: Tue Jan 16, 2007 7:06 am

I'm not here to tell anyone not to pay their bills or anything like that but another thing to take into consideration is how long it been charged off.If it is a recent charged off account then its probabaly gonna be on your report for about another 6 1/2 yrs.If it is due to be off your report soon and the SOL has run out then personally i would just leave it alone.Also when you settle for less sometimes the collector/creditors will send you a 1099 and you have to claim the reduced amount as income on your taxes.Just like candice said if you have themoney to settle and they are willing to do so,make sure that you have it all in writing before sending any money.And keep the letter and all documentation incase you need it later.Sometimes ,maybe even years later another collector will come along and try to get the additional amount,and then you'll have the proof that it was settled.

Posted: Thu Jan 18, 2007 5:57 am

I had no idea you could get a 1099 on your debt. I'm with ya taksmom476. If all you have to do is wait it out, do so. Use your money to pay on newer items on CR, or pay on current bills so they dont end up on CR. Certainly dont risk court by not paying, but weigh the benefits of paying against the benefits of putting the money away.

Posted: Thu Jan 18, 2007 7:04 am

Not paying your bill, when its about to fall off in a year is still risky. You still risk the chance of having to pay the full price the collection agency is attempting to collect, plus any interest or court fees that have been attached if it gets taken to court.

Remember though, if it does get taken to court, and the judge finds in favor of them, you'll only get 25% of each check garnished. Failure to pay could result in jail time.

After you have asked for validation, and received it, you can start working with your creditor. If you had a $500 credit limit credit card, and they're attempting to collect $1200 on it because of late fees, offer $700. If not, then send a cease & desist letter, and wait for their offer.

You can either ignore it, and RISK that chance in court, or accept their offer.

There's really no...."which is better". It's your credit that's going to be affected, so make your decisions wisely.

Regards
Mike

Posted: Thu Jan 18, 2007 8:10 am

I was in no way telling them not to pay his bill. Especially if there is a year or more until the sol runs out.I'm talking if they only have a month or 2 until it runs out.If they are already past the sol and its due to be off their report soon then all I was saying pay the ones that are still well within the sol and that are going to be on their report for a good bit longer.

For example: You have 5 charged off cc on your report...2 are much older and past the sol, and due to be off you report in 6 months...3 are farely new,still well within the sol,and not due to be removed for another 6 years.
I would pay the newer ones,because there is amuch better chance of being sued over those ones.And those will also be on your report much longer and in the long run will look better if you pay those.

By making a payment on the ones past the sol.it will bring them back within the statutes.Bringing up the possibility of lawsuits on those as well..So if they would for some reason stop paying on those again there is now the possibility of 5 lawsuits instead of 3.

Then for moral reasons or whatever they can then pay the ones that were past the sol.

I am sorry sorry if it was construed that way.

Posted: Thu Jan 18, 2007 8:28 am

Posted: Thu Jan 18, 2007 8:42 am

I just didn't want people to think I'm her as an advocate to not paying your bills thats all.I know you didnt mean anything by it.Believe me I know the good feeling a person can have when they can and do pay all their bills on time.

And as you said every avenue can have a stump in the road.Thats why I try to weigh out all my options first.

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