What is the affect on FICA of "Settled by Agreement" offer on a credit card debt?
Posted on | January 28, 2009 |
Best Way to Settle Your Credit Card Debt FAST:
Do It Yourself Debt Elimination Debt Settlement
I had a medical problem and couldn't work for 2 years and really hurt my outstanding credit history. I had a $5,000 Visa card debt and a $19,000 Mastercard debt. I got on a payment program on both cards, offered to me by the banks. I paid both down to below the limit. The $19k one re-activated my account and I have continued to pay it down to $17k. The $5k account, I missed a payment, was dropped from the program and it has now climbed with late fees and penalties to $7010. The bank offered to settle the whole debt by paying $5010 (70%) by Sept 15th. Last I checked my FICA was 575 or so.
Here is my question? Will I have a more difficult time getting my credit rating up if I do this 70% settlement by paying $5010 by the 15th or would it be better to do the following - pay roughly $3,500 asap and then pay the rest off over the next 4 months? My goal is to repair my credit in the shortest time possible. I have about $3,500 now and might be able to borrow $1510 more but it will hurt.
check these links, then decide what you want to do, they might even get you to change your mind!
see the FAQ on the first link down but really there's plenty of advice throughout if you have time to read:
http://credit-cards.ebookorama.com
http://finance.ebookorama.com
http://credit.ebookorama.com
http://credit-repair.ebookorama.com
good luck!
if it helps please remember me cheers
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5 Responses to “What is the affect on FICA of "Settled by Agreement" offer on a credit card debt?”
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January 28th, 2009 @ 10:56 am
Require a pay for deletion for $5,010.
The hyperlink of the letter you send is attached.
If you can get them to agree to the pay for deletion in WRITING, then you will score should improve when the balance due AND the delinquencies are removed from your credit report.
References :
http://www.loanatlas.com/library/credit_repair_letters_4.html
January 28th, 2009 @ 11:15 am
First off, having a paid negative on your reports is just as bad as having an unpaid negative.
You might want to send them a letter (send it certified mail, return receipt) and request to pay something like $4000. Also request that they will delete anything they have placed on your reports, that they will not sell the debt or the remainder of the debt (even if you pay the $5010 they may sell the remainder) Also request that they will not continue to collect on the debt after payment.
You might also check the statute of limitations (SOL) for collecting debts in your state. Since you have been making payments on that account, the SOL would start when you stopped making payments.
It could be possible that you are out of the legal SOL for collecting the debt.
I would suggest going to the site I've listed. Do some reading in the newbie forum first, then in the credit forum. Do some searches for PFD (pay for delete) and read up on how to write a PFD letter. You can also find the SOL for your state there.
References :
http://creditboards.com
January 28th, 2009 @ 12:01 pm
It's your FICO score actually, not Fica and DaMan and Echo gave great advice. I can't elaborate on that…good luck and hope things work out for you.
References :
Dog rescuer /trainer for umpteen years; specializing in the German Shepherd Dog.
January 28th, 2009 @ 12:37 pm
Your credit rating is in the toilet and swirling fast…..your situation warrants settling. Getting out of debt by settling will have implications on your credit report, but not as bad as having these high amounts on your cards or eventually bankruptcy etc.
Don't settle for 70%. You can get a better deal. Most will settle for 50% of less. Do some research and don't let the threat or thought of your credit rating going down worry you. It already has. You will need to be a few months behind to even have the cards negotiate with you.
Read everything you can find about settling before you do anything. Try these sites for starters……
http://www.creditinfocenter.com/
http://www.zipdebt.com
References :
January 28th, 2009 @ 1:06 pm
check these links, then decide what you want to do, they might even get you to change your mind!
see the FAQ on the first link down but really there's plenty of advice throughout if you have time to read:
http://credit-cards.ebookorama.com
http://finance.ebookorama.com
http://credit-repair.ebookorama.com
good luck!
if it helps please remember me cheers
References :