Should I Pay the Settlement Offer or Not?
Date: Wed, 01/28/2009 - 12:19
In order to insure you will not hear anything more, you must get
In order to insure you will not hear anything more, you must get the offer in writing along with a statement that clearly states the debt has been settled 100%. If you get that and pay the amount, the hastle of the debt will be done. However, the bad marks will remain on your credit score for 7 years I believe.
I also want to ask what will happen if I don't pay the debt and
I also want to ask what will happen if I don't pay the debt and totally ignore calls and letters from the collection agency? Thank you!
Quote:Is paying the settlement will help my credit history and i
Quote:
Is paying the settlement will help my credit history and improve my credit score? |
Settled for less will not improve your score
Quote:
What will happen after I paying the settlement? Is this debt over and I don't need to deal with it anymore? Will the record of this collection be eliminated from my credit history? |
Unless you have an agreement in writing prior to paying that stipulates that they will not sell off the remaining balance, this could come back to haunt you later. Likely it would be reported as a paid collection unless you can get it in writing for a deletion
So you are saying I should not pay this settlement?
So you are saying I should not pay this settlement?
If you can pay it I would. Personally I wouldn't want collectors
If you can pay it I would. Personally I wouldn't want collectors calling me for the next ten years and with todays economy and the amount of the debt it wouldn't suprise me if you got sued. Depending on your states SoL.
Since you don't answer your phone I will assume you have the settlemnt offer in writting. If you don't I suggest you get it.
It will not help your credit report immediatly if you pay the settlement. It will help in the long run. Everytime a collection agency makes an inqury on your report it hurts. This will stop. It will also stop getting updated as nonpaid. It will stop collection agencies from attempting to find you at work, through relatives or neighbors and at home.
If you pay the settlement then you will need to find out when you can get a zero balance letter. A zero balance letter simply states that the debt has been paid and you owe no more.
it will eventually be better for your credit. on your report it
it will eventually be better for your credit. on your report it may show something like "settled" instead of it still being nonpaid, or unpaid. Eventually your credit will go back to normal if you start on the right track and pay your new or outstanding bills on time. I have alot of "settled" on my reports and my score is better than it ever was because after i went through my settlement company, all new accounts were kept current. I would definitely take the offer its a good one and it will help you later but like the above post be sure you get it in righting. So later it does not come back to haunt you again
if you can afford to settle, i really would. i have settled most
if you can afford to settle, i really would. i have settled most of my debt and the burden being removed from my shoulders was more than worth it.
First things first
You need to first check the statue of limitations for your state as some States are as little as 3 years, after that they have to wipe out the debt and you owe nothing. If you inform the collection company if the limitations they have to honor it.
Truth about SoL
Quote:
Originally Posted by Anonymous You need to first check the statue of limitations for your state as some States are as little as 3 years, after that they have to wipe out the debt and you owe nothing. If you inform the collection company if the limitations they have to honor it. |
Dead wrong!
Statutes of limitation do indeed vary by state, but passage of the SoL period does not wipe out the debt. You do still owe the debt. You just can't be sued for it after the SoL has run.
Also, when you check the SoL period for your state, pay attention to the account type. Different types of debts often have different SoL periods in the same state.
Further, be advised that SoL is completely separate from the federally-controlled reporting period. That's the time that the debt can legally be reported on your credit report. 7 years from the charge-off date, or 7 1/2 years from the date of last activity on the account.
