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OverMyHear · Posted: Mon Jan 23, 2006 8:41 pm Subject: Are payoff amounts helpful/harmful?

When you are offered a payoff amount, should you accept?(only when in writting, of course!) Does it show up on your credit report that you took a payoff amount? Does that reflect negatively on your credit report?

Thanks!

--K from New York

Posted: Mon Jan 23, 2006 8:44 pm Subject:

I would negotiate for the entry to read "paid as agreed" or paid. Of course get that in writing too, and follow up on your credit report to make sure that it shows that way. Of course, paying an account off is better than a charge off, but some lenders might question or give negative consideration if it reads Paid at reduced amount. Good Luck to you!

Posted: Mon Jan 23, 2006 9:17 pm Subject:

Yes,if its with the original creditor,and they change it to paid as agreed,it will most diffently be a positive.

Posted: Mon Jan 23, 2006 9:44 pm Subject: What if...

What if it is offered by a collection agency, is it still a good thing?

Thanks again!
-K from New York

Posted: Mon Jan 23, 2006 11:18 pm Subject:

I would still ask that they mark the account paid in full instead of settled. If you propose it, they may accept, just get it in writing!!
Good luck to you. I'm a single mom with no support from ex either!

Posted: Tue Jan 24, 2006 6:39 am Subject:

Thank you everyone for the clarification! I'll try getting a payoff. If it won't hurt me, then I may as well try.

Thanks again!

leslye rooze · Posted: Tue Jan 24, 2006 7:01 am Subject: credit report

how long does it really take for something to cycle off your credit report.

Posted: Tue Jan 24, 2006 10:55 am Subject:

leslye rooze, what exactly is the "something" you are questioning? Fron my understanding, each state has it's own Staute of Limitations (SOL)that a negatve item can remain on your credit report.

Also, one more question... Embarassed

When writing to a company to offer a pay off amount, what percentage should I offer as a payoff amount? For example, I owe one company $4500.00. What should be my offer of a pay off?

Posted: Tue Jan 24, 2006 11:36 am Subject:

Leslye rooze

You might be having your query regarding the accurate negative information that stays in the credit report. If I am right in understanding your question, negative info stay in the file for a period of 7 years. Bankruptcies stay for a longer period which is usually 10 years.

Once the time span of the negative remark is over (begins from the date of reporting), it will be automatically removed from your file as per the FCRA laws.

OverMyHead, you can expect from your creditors a reduction of 40% - 60% in the total amount of debt.

Posted: Tue Jan 24, 2006 10:07 pm Subject:

Posted: Wed Jan 25, 2006 12:48 pm Subject:

Before you offer the deal, get the principal amount as well as the other financial charges individually. Most of the financial charges can be cut off from the total amount. It entirely depends upon the interests of your creditors.

Let them give you the settlement amount first before you finalize the deal with your total payment. Some lenders can also offer the facility of stretching your payments.

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