Question about credit card debt settlement.?

My fiance has a Bank of America credit card. There%26#039;s a $7500 limit on the card but after finance charges, late fees etc, the debt is now at $8900. She went 120 days late on payments and was called by Card Services, they say they%26#039;re a collection division of Bank of America. They offered her settlement in the amount of $4500 rather than the $8900 on the card. She thinks its a deal because half the debt is %26quot;vanishing%26quot;. We checked her credit report and she isn%26#039;t listed as being in collections just extremely late on pay. I argued with her saying that the settlement is bad and that it will affect her credit for years to come but she thinks its a good plan. We%26#039;re planning on looking for a house in a year and a half and i don%26#039;t want this to affect our buying power. So how does settlement effect her credit? Does paying off the full amount rather than settling look better on your credit report even though the account is past due? What should we do, who%26#039;s right here?

Question about credit card debt settlement.?

Many companies now have an internal collection division. It would be better to settle while it is still within Bank of America than letting it go any further like say to an independent collection company. Then she may run the risk of two blemishes on her credit record instead of one. And as far as her credit record goes, the damage is already done.

Question about credit card debt settlement.?

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Question about credit card debt settlement.?

if she has the money to pay if off in full the she should do it, if not settle!!!!

Question about credit card debt settlement.?

Her credit is already affected by the high debt and late payment history. It will be on her history until it is paid in full and then will remain there for 7 years.

Settling will be a mark against her on her credit BUT... if you can settle now, it will be taken care of, and the matter is 7 years from being off her credit.

So, bad credit either way, but one way will get your credit clean several years sooner.

Unless she can just afford to pay it off within a couple months...but if she had that much disposable cash laying around she probably wouldn%26#039;t be that much in debt to begin with.

Question about credit card debt settlement.?

If she has the money, she should call today and ask for the settlement agreement in writing with a clause agreeing to mark it %26quot;paid as agreed%26quot; on the credit report. They are chasing an end of month goal and for the promise of immediate money (check by phone), they will likely give you what you want.