Debt settlement versus pay debt in full

Date: Tue, 12/15/2009 - 14:43

Submitted by Alex Kaplan
on Tue, 12/15/2009 - 14:43

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Total Replies: 3

I have a $1043 debt owned by Portfolio Recovery Associates. They have offered to settle for $729 but will list it as settled on my credit report. Should I pay full $1043 so it is listed as paid in full. Does it make that much difference in terms of my credit?

A 'paid in full' would look better on a credit report but 'settl

A 'paid in full' would look better on a credit report but 'settled' at the same time it wouldn't cause any additional damage to your credit report either. Also your prospects of receiving future credit would get much affected by the way the account is stated. However, you may still negotiate with the creditor to report it as 'paid in full'.

lrhall41

Submitted by SC on Tue, 12/15/2009 - 20:05

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I have tried to negotiate with the creditor to state it as 'paid

I have tried to negotiate with the creditor to state it as 'paid in full' but the adamantly refuse unless I pay the full $1043. Please tell me more about the implications for getting future credit if I settle instead of pay in full.

lrhall41

Submitted by Alex Kaplan on Wed, 12/16/2009 - 13:01

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Interested in this also. Everything I've read said an account li

Interested in this also. Everything I've read said an account listed as "settled" is one of the worst things you can have on your credit report.

It's such a small amount, you should just pay it in full and have a better chance at borrowing in the future if you need to.

lrhall41

Submitted by on Wed, 12/16/2009 - 14:31

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