Consilating Credit Card Debt?

ok first off some background information, I am a 21 year old male, married with 1 child. My wife and I have about $7,000 in credit card debt(haha from falling victim to the ever popular %26quot;pre-approved%26quot; scam, not saying its not my fault). We make between $1800-$2000 a month in net income(don%26#039;t worry this isn%26#039;t permanent, we%26#039;re both in college). Our house payment is $400 other utilities add up to about $200, then we have car notes that total $390 a month(we both had one before we got together). Then finally we pay about $240 a month on the minimum payments of our credit cards. Is there any way we can consolidate this credit card debt to where we can have them paid in say 2 years or so before we graduate college.

Consilating Credit Card Debt?

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Consilating Credit Card Debt?

My wife and I were in a similar situation and we went to our bank. We got a line of credit opened and put our debt into it. It has a better interest rate than all of the credit cards, but it is still kind of high. Simple math says that a $7,000 debt in 24 monthly payments would be about $290 per month. This does not factor in interest though. So to pay off your $7,000 with interest in 2 years, your payments will be over $300 per month.

Consilating Credit Card Debt?

Consolidating doesn%26#039;t help. Instead of owing seven people $1,000 each, you end up owing one person $7,200. Do the math.

The truth is, your cars are what%26#039;s killing your budget.

You%26#039;re paying as much on those as you are on your house.

In 24 months, you can be out of debt, plus have $7,000 cash in the bank.

Here%26#039;s how:

1) Sell the cars, get rid of the car note.

2) Buy a $1,500 beater.

3) Carpool each other.

4) Combine the $240/month you%26#039;re already paying to the cards with the $390 you had been paying on your cars, and start paying $630/month toward your credit cards.

5) YOUR $7,000 CREDIT CARD DEBT WILL BE PAID OFF IN 12-13 MONTHS !!!!!!

6) Continue putting $630/month away, but now, put it in the bank for the next 11-12 months.

7) GRADUATE IN 2 YEARS WITH $7,000 CASH, INSTEAD OF $7,000 IN DEBT.

Consilating Credit Card Debt?

I would try to get a credit card that has a 0% interest rate for a period of 12 months. Try to pay as much as possible! Then, if you still have a balance, just transfer the balance to another card that has a 0% interest rate for another 12 month period. That way at-least your payments are going towards the actual debt rather than interest charges. Check out this website to compare credit cards with 0% / Low-Interest credit cards. Hope this helps!

Consilating Credit Card Debt?

I would suggest going to a site that allows you to compare balance transfer cards. One site that I know is reliable is http://mysite.verizon.net/ressg6c7/right...

They make it easy to compare cards and apply on-line. Plus they have secure on-line applications.

There are some cards on this site that will allow you to transfer the balance of several cards onto one new card. They even have cards that will lock your rate for the life of the balance transfer.

You should be able to lower your monthly payment by doing this.

Credit card debt - wait 7 years or file bankruptcy? Help Please?

O.k. here is the situation. When I was 20-24 years old I ran up a lot of credit card debt about $20,000 (I am 30 years old now). Then I moved abroad to study and I currently live abroad and don%26#039;t plan on moving back to the U.S. for at least another 5 years. What happened was that at a certain point I couldn%26#039;t pay my credit cards anymore and just let them go. Now I am still studying and can%26#039;t afford to make payments. So, what happens if I move back to the US? Is there a statue of limitations on the debt? Should I file bankruptcy? How would I do that if I am living abroad?

Credit card debt - wait 7 years or file bankruptcy? Help Please?

Assuming it is all unsecured credit cards, the banks can still come after you regardless of SoL. They just can%26#039;t take you to court after that.

Regardless of how long it takes, creditors look better on people who pay thier debts instead of skirt the issue. That being said, setteling may be an option so long as they don%26#039;t actually put the word SETTLED on your report. For lenders, that is similar to the scarlet letter.

-------

Since it was in Texas, it is 4 years from last payment or promise to pay was made. Clock resets if either of these occur. After 4 years, the companies are still entitlted to their money (it was theirs to begin with), they just can%26#039;t sue you for it. If they do, it can be dismissed in court. But seek help if they do.

To get the matter resolved, make a structure debt plan and pay them off one by one. Pay what you can afford, but pay yourself first.

Credit card debt - wait 7 years or file bankruptcy? Help Please?

If that%26#039;s all the debt you have you can easily arrange a payment plan throu an outfit like Debt Reduction Servcies, remove much of the interest and part of the original principal and do the honorable thing, pay it back. In any case, a bankruptcy won%26#039;t plague you any more than what your credit report looks like right now with a bunch of chargeoffs on it. I don%26#039;t know what you%26#039;re doing while living abroad but if you%26#039;re still a student you ought to figure out what you want to do for a living and start doing it, whether abroad or wherever you%26#039;re at and start behaving like a responsible, tax paying citizen instead of dodging your responsibilities. Having said all that the banks are to a degree responsible for your situation by loaning you the money in the first place. If they gave a rat%26#039;s rear end about how they invested that $20,000 of their depositors money (they invested it in you, a bad investment) they never would have issued the card to a student. So, they took a real high and bad risk. The only way the Banks will change their lending habits is if about a million guys like you all file bankruptcy at the same time. It would send a message, not about bankruptcy but about lending and borrowing. Start earning a living and paying cash. Credit card debt is for real chumps. learn a lesson and don%26#039;t repeat it.

Credit card debt - wait 7 years or file bankruptcy? Help Please?

Here%26#039;s an idea - get a job and pay your debts. When you have some money saved up, call the credit card companies and offer to settle. They can mark the account paid and some may even agree to remove the derogatory line. Otherwise, why shouldn%26#039;t future creditors know you are a deadbeat?

Credit card debt - wait 7 years or file bankruptcy? Help Please?

20 G%26#039;s in credit cards. Wow.

I would try to get a loan to consolidate them all, with a reasonable interest rate that will allow you to have a chance of paying it all off in this lifetime.

Of course, you can always delcare bankruptcy - but I don%26#039;t think you would learn much by doing that.

Credit card debt - wait 7 years or file bankruptcy? Help Please?

1. You can look at credit consolidation. Use a non-profit organization who won%26#039;t overly burden you with fees.

Example of non-profit companies

http://www.dmcccorp.org/

http://www.cccsatl.org/

http://www.consolidatedcredit.org/defaul...

2. If you have not paid in a year or more all the debt prob went to collections. The banks may have charged off the debt. You can get a copy of your credit report to see what happened.

http://www.equifax.com/home/

3. If you file BK, it can sit on your credit report for 7 years.

http://bankruptcy-law.freeadvice.com/con...

4. There is no statue of limitations for a creditor to go after you for money.

Privacy Rights:

http://www.privacyrights.org/fs/fs6-crdt...

Good Luck!

Credit card debt - wait 7 years or file bankruptcy? Help Please?

You spent it. You%26#039;ll have to pay for it. Credit card companies shouldn%26#039;t have to eat your mistake. Just slowly pay for the cards through a debt consolidation place.

If you lent me 20,000 and I tell you I can%26#039;t pay you back, how would you feel?

Credit card debt - wait 7 years or file bankruptcy? Help Please?

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Credit card debt - wait 7 years or file bankruptcy? Help Please?

Hi,

I used %26quot;Credit Solution%26quot; to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It%26#039;s legitimate.I came across this company on NBC News Special Edition.Check it out here:

http://creditsolution.ez-mart.biz

Credit card debt - wait 7 years or file bankruptcy? Help Please?

Have you looked into hiring a debt management company? The initial call is free, so it maybe worth a shot. I had a friend that used one last year, and it sounds like they really helped put my friend on a plan to becoming debt free.

Credit card debt - wait 7 years or file bankruptcy? Help Please?

I%26#039;m from Dallas and had about 12k in CC debt. I wound up finding a local company that was able to settle my debts for me for 53% of what I owed, so I saved almost 6k. I don%26#039;t kinow if they only accept Dallas residents or not but their website is http://dallasdebthelpdebtconsolidation.c...

Credit Card Debt/ No money this week? what would you do?

I have around 5,500 in credit card debt. I am not proud of it and I am absolutely working on controlling my finances but Im in a tough situation this week.

I have been really good the last couple months.. i promised myself id never use the card again and ive been making payments and controlling my finances.

The problem was before... I would pay off some... and then end up with not enough money that month so id put the same amount back on!

This week... i slipped up.. its not like i buy alot of stuff.. but money was just extra tight. I literally have 35 dollars until next friday. and no food. which is nuts. But, i really took that stand that i would never use my credit card again.

Im having a tough time b/c i know if i put groceries on my credit card... i could make a payment next friday and id be the same as it was now.. but not lower.

But it just doesnt make sense also to starve for a week :( What would you do? Should I keep my foot down ? or use the card?

Credit Card Debt/ No money this week? what would you do?

Perhaps you should go to a food bank. I was reading an article that with the economy the way it is, more and more people were having to ask the food banks for food, even people making what *had* been a decent income.

The other option, and it%26#039;s not a pretty one, is that you simply stop paying the card. Right now, *if* your interest rate is reasonable, say 14%, you%26#039;re paying probably almost $100 a month in interest. If you%26#039;re not making payments of twice what you%26#039;re paying in interest every month, if you%26#039;re only paying the minimum, it will take you over 25 years to pay off that card and they will charge you somewhere in the neighborhood of $9000 in interest! Check out the calculator below...it%26#039;s an eyeopener.

http://cgi.money.cnn.com/tools/debtplann...

Yeah, you%26#039;ll have seven years of bad credit, but you won%26#039;t be digging yourself in deeper and deeper, which is what you%26#039;re doing right now. I remember learning this the hard way too. Been there, done that.

You could also see if you could negotiate some sort of payment plan with them, so that you would have an end in sight to the madness. These card companies are usually greedy though and want every last penny of that exhorbitant interest out of you. You could try debt couseling. Couldn%26#039;t hurt.

Credit Card Debt/ No money this week? what would you do?

First thing i would do is cancel the card.

second start a written budget.

I would make sure I bought food off the top of the budget and made the house payment and utilities. Credit card last if you have the money!! You need to eat and you need a home. The credit card company is not gonna take your house if you dont pay them.

You might want to take a second job until you get the debt payed off.

I%26#039;d check out daveramsey.com and listen to his radio show. He has lots of great advice on money and debt. It doesnt cost a dime to listen to the radio. He keeps a 10 day archive of his radio shows on the website.

He%26#039;s all about living debt free.

No payments = cash in the bank.

Credit Card Debt/ No money this week? what would you do?

Honestly, I would go to McDonald%26#039;s and have a #2 which is a quarterpounder with cheese, fries and a Coke for less then $5.00 and only eat one meal a day.

It%26#039;s like 1,500 calories so you won%26#039;t starve and you won%26#039;t use your credit card either.

About the last thing I would do is quit paying and ruin my credit over a $5,500.00 debt, that%26#039;s not even enough to qualify for bankruptcy or credit counseling.

Credit Card Debt/ No money this week? what would you do?

Ditto Spifiman1.

Credit Card Debt/ No money this week? what would you do?

Pay no attention to the first two posters they simply do not know what they are talking about.

Spifiman1 gave you the best answer.

And the #2 is great by the way.

Credit Card Debt/ No money this week? what would you do?

1)I would say food shelf is a good idea

2)do not drive if possible. Maybe car pool the rest of the week and see if you can drive a coworker next week on payback. Keep it up and you may save lots of gas

--- walk it if possible

---- bike it if you have one

--- ride the bus

3) great idea, I dont see why more people do not try this. Get a group of coworkers or classmates. On Friday of each week, make a lunch theme. Each person can bring a portion of the meal for that theme and eat lunch at your desks, in your work kitchens or a common area. You will find alot of your coworkers are in the same position as you. No need to go out and spend 7 dollars at lunch. Think Nachos at a sit down place are lik 6 bucks plus tax and tip (like 9 dollars). If you brought the bag of chips, other person brought the shredded cheese, another brough a 2 liter of soda, another brought a head of lettuce and tomatoes and another a can of salsa. You will all get a decent lunch for about 2 bucks each. You can do the same thing with sandwiches. Grocery stores have good sized individual rolls of bread for less than 50 cents a piece. You buy 4 or 5, another person brings pop or koolaid or juice, another buy a packet of ham or 2, another bring lettuce, tomato, and their mayo or mustard for home, and another brings chips or apples. Another lunch for 2 or 3 dollars each. Get creative. As long as 1 person brings some pop or juice and another some fruit or a snack, and 2 or 3 of you work on the main meal you will spend well under 15 bucks a month on lunch and get to hang out with your friends.

Other ideas

Pita bread and tuna

Eggs (cook at home and microwave at work) with tortillas and vegetables and or some sandwich meat

A nice salad with cut up sandwich meat and cheese in it.

But, swallow your pride and go to a food shelf one time that is what they are for.

Try your best not to use that damn card. And, after this week, cut it up and open a free savings account somewhere and put at least 10-20-30 dollars a paycheck into it... And, dont get a check card/atm card with it. And, even make it inconveinent to get to. So, you can mail your deposits in. And, have to really think about going to take the money out. It has worked for me. Now I always have atleast 1000 dollars in that account - because I cannot withdraw the money from ATM, I have to go the bank in person when it is open. If I am short money on my primary checking account, I think

%26quot;Is it worth going to my credit union to sit in line and take out 20 or 40 bucks to get me through the rest of the week, or can I suck it up, not rent a movie, not go out to eat, not go to the bar for a few days and live off ramen and left overs?%26quot;

After a while you forget the money is even in the savings.

Also, look into a second job. I have a part-time job. It is the difference between living on credit cards - or paying them off. I paid off 10,000 in credit card debt in less than a year. I took all of the money from my part time job and paid it ontop of the minimum payment each month. So the minimum payment plus my part-time job checks. I ended up getting out of debt in about 9 months. I was able to then save that part-time job money to take a trip to NYC, then another trip to Turkey and Ukraine. I am going to visit my sister in San Francisco in January and to Puerto Rico in April... Now that I dont have to make those card payments... I use that part-time job for travel money...

SO STICK WITH THE PLAN YOU CAN DO IT. I USED TO BE IN YOUR SITUATION... YOU CAN BEAT THE CARD COMPANIES. STICK TO YOUR PLAN. AND ENJOY THE SMALL THINGS IN LIFE... A good home made meal, relaxing on the couch with a book, sitting around talking with friends - you dont have to go out. Borrowing a good movie from a friend or family - you dont have to go to blockbuster. And, if you want to buy something that is not a necessity, get it used - Blockbuste sells used DVDs for over 50 percent less than new and they all come with 30 day trade in if they are scratched are dont work. I got 4 dvds for 20 dollars last week at blockbuster and these are all newer movies that came out in 2006 or 2007.

Which credit card debt do I pay off first?

My husband and I have ten thousand dollars in credit card debt. Most of it is on interest free plans, not due to expire for sometime. However, I have two cards at 14% interest and one at 11% interest. Should I pay off the one with the oldest debt, newest debt, smallest balance, largest balance...? Which way will help our credit the best?

Which credit card debt do I pay off first?

The debate on which is better, pay off based on the interest rate or the amount, is one that is argued over by top financial advisors. So, their is not a single correct answer to your question.

The arguement for paying off based on amount is actually to pay off the smallest amount first. This is often referred to as the %26quot;snowball%26quot; method. The idea is that you attack your smallest amount first, then roll the entire amount you were paying on that to the next debt and so one until you pay off all your debts. You build bigger payments to send in like a snowball. The main argument for this is a pshycological one. Because the number of debts you have goes down quicker, it seems more managable and you feel more confident that you can actually get out of debt. This is the method that advisor Dave Ramsey suggests.

The another option is to attack your highest interest rate debt. The arguement here is that when all things are equal, a dollar in the higher interest rate account is costing you more than the same dollar in a lower interest rate account. This method will actually cost you less over the course of paying off the debt. Because it costs you less, this is the method of the two options you gave that I would go with. This is also the method that financial advisor Suze Orman suggests.

Both of these methods work like this. You pay the minimum balance due on ALL debts owed. Then, you take all the extra money and apply it towards the debt you are %26quot;attacking%26quot;, either lowest amount or highest interest rate. Then, once that debt is paid off, you find the next debt to attack based on the same method and you continue to repeat this process until you are debt free.

There is another option that I would argue is the best of both worlds. You can consolidate your debt into one loan. Depending on the type of debt you have, this method will most likely yield a lower interest rate. This means that you get the managability of the smallest amount method and the savings of the highest interest rate method. Sometimes it can be hard to get a consolidation loan from a bank. But thanks to technology, you can get a social loan very easily. This is a loan where people from all over can help fund your loan, and then you just pay them back through the loan facilitator. Here is a link to the company I use, https://secure.lendingclub.com/landing.a... . If is free to sign up and get a rate quote, so you don%26#039;t have to worry about a catch. If you decide to sign up and go this route, let me know your username and I will try and help fund your loan.

As for which method will help your credit the best, the last method will boost your credit the most. This is because you will increase your available credit without increasing how much of it you have used. This brings down your Revolving Creidt Line Utilization which increases your credit score.

Good Luck.

Which credit card debt do I pay off first?

Get rid of the highest interest card first and then work down. When all are paid, cut ALL your credit cards in half.

Which credit card debt do I pay off first?

the one with the highest interest rate!!!

Which credit card debt do I pay off first?

Transfer balances to lower/no interest if you can and then start with the one with the smallest balance and eleminate them one by one.

Which credit card debt do I pay off first?

Most credit counselors will tell you to pay off the highest interest card first. Cut up ALL the credit cards except the one with the best interest rate potential. Don%26#039;t cancel the cards, though, since doing so can actually hurt your credit rating.

Just let the accounts lie dormant after the balance is paid off.

Also, avoid any offers to consolidate the debt. Research shows 90% of people who do this are in the same situation again within 5 years and still owe the original debt.

Which credit card debt do I pay off first?

Put the money toward all of them. Put the most money toward the ones with the highest interest rate. Then do them descending by interest rate. After you have all of your 14 % interest rate ones paid off, go for the next highest interest rate with the largest chunk of the payments. Then just work to pay them off. Continue in order of decreasing interest rate.

Which credit card debt do I pay off first?

I%26#039;m gonna go against the pack here and say pay lowest balance first. Pay the minimum on all but the smallest balance pay everything extra you can afford on it, then move on to the next lowest balance, your goal is to kill the principal after all.

Will a bankruptcy court discharge my credit card debt so I can pay my student loans?

I have six figures in student loan debt and about 40 grand in credit card debt. When I was in my 20s, I decided to move to %26quot;the big city%26quot; and take a job that paid 20 grand a year. That%26#039;s how I got the credit card debt. I got smart and went to school and am now an attorney. But I can%26#039;t afford to pay my student loans AND my credit cards. I know I can%26#039;t discharge the student loans, but will a bankruptcy court wipe out my credit card debt so that I can pay my student loans and still live a middle class life?

Will a bankruptcy court discharge my credit card debt so I can pay my student loans?

If you%26#039;re a lawyer, you know you can%26#039;t. You have a profession, an income, and have to pay off your bills. If you go to bankruptcy court, they will likely put you on a payment plan. You can do that yourself - pay your bills first, then necessities like a very modest apartment.

Bankruptcy is a no-no for attorneys.

Will a bankruptcy court discharge my credit card debt so I can pay my student loans?

I know dozens of attorneys, and have never met one who paid his student loans.

As an attorney, a BK will be too scrutinized to forgive any cc debt. If I was on the other side of your 341%26#039;s, I%26#039;d blow you out of the water. Forget that idea.

If your credit is already jacked, negotiate rate and line freezes on the CC%26#039;s. Simple interest will stop the wheels from spinning and you can get hold of the slippery balances.

Then hire your colleagues at the websites below to fix the old credit and establish new credit.

Will a bankruptcy court discharge my credit card debt so I can pay my student loans?

Did you tried contacting debt consolidation company...they can give you best advice on your problem as they are the experts in the field and they come across may of such cases. Here is the source of the company http://ezconsolidation.com which provide consolidation for all type of debts

Credit card debt and new baby on the way?

I know this sounds like a CRAZY question.

My husband and I currently have about $2,800 in credit card debt. We are also expecting our first child at the end of January %26#039;08.

Has anyone else out there gone into first time parent hood with credit card debt?

If so, was your debt like mine? Or worse? Or better?

We only pay about $200 a month to it and I know, with a baby in our lives, that may be less... but I guess I just needed a pep talk. We are working hard at paying it off and saving money at the same time, but.... I feel like I should be debt free when the baby arrives and that%26#039;s not going to happen!!!!

Thanks guys :)

Credit card debt and new baby on the way?

For the next 4 months, %26quot;pretend%26quot; that you already

have the baby with respect to expenses. You%26#039;re going

to have to buy food, diapers, medicine, blankets, etc

for the baby, so take *that* money and pay down your

credit card bills now. When the baby comes, you%26#039;ll be

used to having that part of your budget being taken,

and your credit card debt will be smaller.

Credit card debt and new baby on the way?

congrats on the baby sucks that your in debt

good luck with the baby

Credit card debt and new baby on the way?

Jan 08 is 4-5 months away, depending on timing. Just pay one-forth each month until then. Take action now. Get second or third jobs. Cut your budget to the bone.

Credit card debt and new baby on the way?

I refused to get pregnant until the finances were in order ,

But some people are braver .

Best of luck with the baby !

%26gt;

Credit card debt and new baby on the way?

Not many people have babies debt-free. There are mortgages, car payments, etc. Treat your credit card debt like you would a mortgage or car payment...as something that HAS to be paid a certain amount evety month or else. Budget around it no matter what. Before you know it you%26#039;ll be debt-free and have some extra income. $2800 is not that bad by today%26#039;s standards..you%26#039;ll get there! Congrats on the baby.

Credit card debt and new baby on the way?

I was in more debt then you were when I had my daughter. I am now debt free with the exception of car %26amp; mortgage. I have no credit card balances. I worked hard and saved. I also found a few websites that allowed me to make money to pay off my credit cards so that I didn%26#039;t have to get a second job. Being pregnant and working just one job is stressful enough. Send me an email if you want to know how I work at home in my spare time doing referals. I will share the info free that I learned the hard way.

Credit card debt and new baby on the way?

My debt is alot more than yours :( and I%26#039;m due around the same time. I am currently working with my mortgage company to lower my monthly payments, and you could do something similar. If you have a good history with the company, ask if they can possibly lower the interest rate. Failing that, see if you can transfer the balance to a card with one of those 0% interest introductory deals. It may help you pay off the card sooner if you don%26#039;t have any interest payments.

Credit card debt and new baby on the way?

Dont worry about the debt you will be fine don%26#039;t let that credit card run you.. You have a baby on the way.. Everything will be fine.Just calm down and focus on other things the bills will always be there at one time or the other you and your family are the most important thing right now.

Credit card debt and new baby on the way?

there%26#039;s an old saying...if you wait until you%26#039;re out of debt to have a baby, you%26#039;ll never have one.

$2800 isn%26#039;t that bad, honestly, unless you make less than 1/2 of that per month.

Just put as much extra cash toward the debt as you can.

Depriving (meaning not splurging as often) now will save you from being overly deprived (and not by choice) in the future.

Best of luck honey...congrats on the pregnancy!

Credit card debt and new baby on the way?

Depending on the inrtrest rate $200 will never retire the debt Also the new CC tems are gong to a 3% min or a $300 payment. Savings shoud reuce the debt, do the math

Credit card debt and new baby on the way?

Hey Guys

Debt is a horrible thing, we all try not to get into it but sometimes lifes circumstances and choices wind us up in a pile of debt. Personally, there is a wealth of knowledge available, and with a little thinking and planning, you can systematically get rid of all your debt. I used to be in big debt, a few hundred thousand, however from about the past year or so I have been living debt free. Im not promoting anything here, I just want everyone to know that its possible. I write about my experiences in regards to Debt Consolidation, Car Loans, Credit Cards, Student Loans on my blog listed below so stop by if you get a chance and leave some comments.

http://credit-and-loans.blogspot.com/

Credit card debt and new baby on the way?

Credit card debt consolidation adds up all your unpaid balances and converts them into a single payment. This payment is far lesser than each of the individual payments.

When you finalize a plan with a debt consolidation company, the company repays your dues to your creditors. Then you make a single payment to the consolidation company every month. Your average new interest rate is much below the old interest rate.

http://debts-to-wealth.com/category/Cred...

Credit card debt and new baby on the way?

Hi,

I used %26quot;Credit Solution%26quot; to settle my debt.They managed to reduce my debt 58%.It%26#039;s legitimate.I came accross this company on NBC News Special Edition.Check it out here:

http://creditsolution.easyurl.net

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.?

You can visit http://www.debteraserzone.com and find very useful tips and several articles on credit card related matters. Report It

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.