Debt Settlement Advice
Date: Fri, 06/25/2010 - 10:31
Since then they got a divorce and the bed was left to him.
The account went into collections and yesterday a collections rep called him to try and settle.
The balance is $4,595.
They are willing to settle for $1,154.82 and are willing to let him break it up into 3 payments for the next 3 months.
However, in their letter it says that they will report his the account as
"Settled for less than full balance" on his credit reports.
The deal is great but I'm not sure about the term they are reporting to the credit bureaus? Is that still a great deal or what else should he ask for?
well, unfortunately the term "settled for less than full balance
well, unfortunately the term "settled for less than full balance" is exactly what he would be doing. why would they not want to put that on there?
you can always ask for it to be reported a different way but from what i've read good luck with that.
oh, and WTF kinda bed set costs nearly 5g's?
I call it the "glorified air-matress" haha. It's the Select Comf
I call it the "glorified air-matress" haha. It's the Select Comfort bed with the adjustable settings. You make it as hard or soft as you want. Looking back on it he says he wouldn't have bought it if the ex hadn't coned him into it.
I just wonder what effect "settled for less than full balance" would have on his CR?
Well, what other choice do you have??? Could you pay the $5,000?
Well, what other choice do you have??? Could you pay the $5,000? It is already affected his credit if it is a few years since he made a payment. Google myfico and check out his score or credit report and you can see for yourself and make an informed decision...you have one free credit report a year....but even the $11 to $15 is worth it to pay for the report! IMHO
It is already in default...which is the lowest rating you can ge
It is already in default...which is the lowest rating you can get. Settled is no lower...it is still a collection account...just now paid.
This will help you....
This will show on your credit report as long as you pay less than the amount owed. It is better to pay balance in full to help your credit score, but considering that you are getting a great deal go for it. His credit score will still increase and it is always better to have an account closed and paid legally for less than the amount owed, as opposed to have it in collection status. I received a lot of help from Penny-Wise and helped understand many things and get out of debt. You can contact them if you'd like to if need help with debt. LINK REMOVED
Quote:
Originally Posted by Kitty Marie My boyfriend bought one of those Select Comfort beds a few years ago. However he and his ex defaulted on the payments for the bed. Since then they got a divorce and the bed was left to him. The account went into collections and yesterday a collections rep called him to try and settle. The balance is $4,595. They are willing to settle for $1,154.82 and are willing to let him break it up into 3 payments for the next 3 months. However, in their letter it says that they will report his the account as "Settled for less than full balance" on his credit reports. The deal is great but I'm not sure about the term they are reporting to the credit bureaus? Is that still a great deal or what else should he ask for? |
It will still be a collection account, regardless of how much yo
It will still be a collection account, regardless of how much you pay. So save your cash and settle. Is the debt still within SOL?