Debt Settlement or Paid in full?
Date: Tue, 02/22/2011 - 10:44
The balance is about $7k, and I had originally agreed to settle the debt, paid them $500, and then am to pay $2.5k in a couple of days. (never post dated a second check)
I started dwelling on the fact that I would rather pay the balance over payments, because not only would it look better on my credit report, but it seems like the better thing to do.
I am not looking to get a home any time soon, so my credit report is not immediately important to me, I just don't like having this debt looming over my head where they could potentially sue me.
My questions:
1. Will they freak out if I let my settlement window expire and sue me?
2. Which is a better option? Frankly I don't have the $2.5 to settle but I suppose I could try again next month with them...
Hi Jenny, The damage to your credit was done at the time of rep
Hi Jenny,
The damage to your credit was done at the time of repossession. Paying a collection firm the full amount in monthly installments is NOT going to benefit your credit report.
Getting the account settled now will allow you to begin the process of recovering your credit.
The better option will be to save as much money as possible in your settlement efforts. From what you shared, you already have a settlement in place, but you cannot complete it. Were you skeptical you would be able to follow through with the deal at the time you agreed to it?
Never agree to a settlement that you are not confident you will be able to fund.
Will their be an opportunity to settle next month? Yes, but you may find that initial payment of 500.00 was a complete waste.
Be sure that you get any settlement in writing prior to the funding or partial payment is made. Meet all payment terms and time lines and keep a copy of everything including the proof of payment in a safe place in case you need proof of the transaction later.
Best
