Debt settlement questions, please help
Date: Mon, 09/20/2010 - 11:28
Here's my story. Recently I had agreed with Citicards on a settlement of 30% of my balance. That is paid, the remainder was written off. Now Bank of America wants to settle with me on a credit card. They would like me to pay 40% of the balance. My question is, does having 2 settlements on your credit score hurt twice as much or since I've already did it once that it won't hurt much more? This is the last of my debt, just had the 2 cards. Citicards balance was extremely high whereas the BofA balance is under $10k. Would it be more beneficial to my credit score to just make small payments on the BofA card and not settle?
Also, is there certain terminology that I want said on my credit report when dealing with a settlement such as 'paid as agreed', 'settled'? What terminology is better for the credit score, does it even matter?
Thank you for taking time out of your day to read this and for any insight you can give me. Have a great day.
Also, is there certain terminology that I want said on my credit report when dealing with a settlement such as 'paid as agreed', 'settled'? What terminology is better for the credit score, does it even matter?
Thank you for taking time out of your day to read this and for any insight you can give me. Have a great day.
I'm assuming you're already behind on your BofA account, and by
I'm assuming you're already behind on your BofA account, and by at least 90 days, if they're offering you a 40% settlement. Here's my question. Is your credit already screwed anyway? If so, I'd go ahead and settle it - save yourself $6K plus all the interest they would add over the next several years it might take you to pay it off. Generally, what goes on the credit report after a settlement is "settled for less than the full balance," or something of that nature.
