Posted on
March 25, 2008
at
1:20 pm
Hey All, I have about $5K in credit card debt that is in collection. I've been out of the country for a few years and frankly I was irresponsible and I let it slide. I'm currently saving up to go back to school for a master's degree. While the bulk of the tuition is guaranteed, I will likely have to take out money for personal expenses. Obviously this $5k in debt collection is likely to hurt whatever rate I can get. Am I better off paying off the $5K I owe right now and hoping there's a quick bump in my credit score (which is currently ~665) or am I better off saving the money and paying off the $5K when I've got more money? Any help is much appreciated! -TW
Posted on
March 25, 2008
at
5:34 pm
Why don't you see if you can negotiate for a payoff of 30 to 40 cents on the dollar? If that doesn't work, maybe they will accept 50 to 60 cents on the dollar. I helped my son get a 50 cent on the dollar settlement. His only penalty was he can't ever use that particular credit card again. No big deal as he has another one he uses exclusively and his credit score has shot up considerably. Just thought.
Posted on
March 26, 2008
at
8:03 pm
Thanks for the reply sandalwood!Frankly, I had no idea such a thing was possible. I take it that he'll not be able to get Company X's VISA but could still get Company Y's VISA?My debt is to an Amex card, and I'd rather not be blackballed by them for all eternity... I actually like the company, I just moved overseas and got in over my head. I'm thinking that a full payoff is my best bet.Here's a question: with this paid off in full, will I see my credit score increase immediately (or at least within a month?). - TW
Posted on
March 26, 2008
at
8:39 pm
Paying it off in full doesn't mean your score will rise. You have to have a positive notation in that particular trade line. In other words, since you already in default with them, you must have them remove the default status. If you decide to pay them in full, be sure you get their written agreement on a positive notation for that trade line before you send in the money. That way if they don't make the proper report you have ammunition to get the CRAs to change it.
Posted on
March 31, 2008
at
10:25 pm
My personal, unprofessional opinion is to try to negotiate the debt down and have them mark the account paid in full as part of the negotiation and as sandalwood suggests. It's never a good idea to have that sort of thing hanging over your head if you can help it. This way you can move forward.
Posted on
April 9, 2008
at
2:42 pm
If you were to settle debt with a collections agency, who should you speak to there about either putting down that it was paid in full or to put a positive notation on it?
Posted on
May 14, 2008
at
4:58 pm
Advertising isn't part of what this forum is about. Hence, the above post was removed.
Posted on
June 6, 2008
at
1:51 am
I've got in trouble before over a certain credit card - it's so easy just to charge it, without ever thinking about it. If I was you I'd pay out the debt and be very careful in the future - it isn't easy scrimping and saving, but it's not as bad as those somewhat threatening phone calls at night asking for the money! I've learnt to save, to postpone buying things, to think hard about whether I
want or
need something - most of the wants aren't necessary, and if you get what you
want you may not be able to get what you
need. Learn the difference between want and need!
Posted on
March 23, 2009
at
11:50 pm
Whatever you decide, be sure to get an agreement in writing. There's no way to guarantee that a company has to honor a verbal agreement with you. There are some real sharks out there. Watch out for yourself!
