?charge off is it worth it working out program with creditor

Date: Tue, 07/14/2009 - 05:14

Submitted by anonymous
on Tue, 07/14/2009 - 05:14

Posts: 202330 Credits: [Donate]

Total Replies: 4

Hi Everyone,I have a credit card that was charged off but the creditor called and said it was going to the third party for good in a few days but I had a chance to work out a program with them.I thought what is the point since it is already charged off and my credit report is not going to look any better until that debt is settled now.So,what do you think????Should I work out a program with the original creditor and pay an amount each month until the balance is paid in full ($12,900) or wait for the third party to offer a settlement.I am mostly concerned about my credit report and I know it is already trashed but what would be better?

Have they offered you a settlement amount or are they asking you

Have they offered you a settlement amount or are they asking you to pay in full? If they are not offering any reduction then I would call their bluff. How long have you not payed on this account?

lrhall41

Submitted by on Wed, 07/15/2009 - 02:32

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It must have been less than 6 months, because that is when they

It must have been less than 6 months, because that is when they usually charge it off.

It's certainly worth an attempt. The default itself is already really bad, but a collections account (with accompanying charge-off) will add yet another black mark. If you are able to reach an equitable agreement with them, then excellent!

lrhall41

Submitted by Chrys Henderson on Wed, 07/15/2009 - 02:44

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Since the debt has already been reported as charged off in your

Since the debt has already been reported as charged off in your credit report, I think that it is better to settle the debt for less than to pay it off in full. This is because, even if you pay it off in full, the charged off listing will not be removed from your report and will stay there for seven years and six months from the date of delinquency.

lrhall41

Submitted by SC on Wed, 07/15/2009 - 04:41

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For some reason, I totally spaced on the charge-off because it h

For some reason, I totally spaced on the charge-off because it hadn't gone to a CA yet.

But, correct, once you have the default and then the charge-off, it doesn't get any worse. Settle away!

lrhall41

Submitted by Chrys Henderson on Wed, 07/15/2009 - 20:36

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