Card Credit Debt Help Pay

I have a good job now, and make pretty good money. I got all my college credit cards paid off, except for one. I was told that I can "settle" that credit card debt for approximately $450 less than what the full balance is (settle the $2,100 debt for about $1,650 if I paid in full). Problem is: I can afford to pay in full the whole $2,100...it is already on my credit report as negative because of it being delinquent so much (several times in about 3 years with no payment on the debt for 3-4 months). Someone told me if I settle for less, it will be worse on my credit report. But if its already negative...what is the better option? Keep in mind also that I closed the account about 2 years ago. Should I pay it off fully, or just settle and save money? Will it ever show up as positive on my credit report? Or just as "closed/paid off" status. Which is better? Sorry about all the parts to my question! :) Please help!!

i think, well paying in full might say a little more than paying a debt on sale by the agency.. for me i would also feel more comfortable not only showing a loaner that not only was my past debt paid in full, but without a collection agency's discount offer.. Also, remember collectors usually are happy as long as you show an interest in paying off your debt.

2007-01-24 17:56:39 by D

There are a couple of ways to pay off credit card debt, including getting a consolidation loan, making more than the minimum payment and starting ...

My husband and i would like to sell our place and buy another place,however our debt income ratio is too high right now.
What would be better to pay off to lower our debt to help us move. Would it be better to pay off all our credit card / loan debt or one of our vehicles?
all our credit card/loan debt equals to around $10,000 and our vehicle is about $25,000

Thank you all for your help
i should also add that our credit card interest rate on everything is 19.9 % and up and our vehicle interest rate is 15%

As mentioned - it's best to pay off the higher interest as it would cost you more money that you otherwise wouldn't pay.

I'm a little confused however - do you have enough to pay off the full amount of the car? if you do, then maybe fully paying off the car would be your best bet to get that new house. no car payments = bigger repayments on your credit card AND your debt to income ratio will change more significantly.

You also have to understand that debt - does not mean you will have a low credit score. Missing a payment does however lower it.

Maybe holding off on a another house and upgrading your current one may be a better option for the time being. Let the market come up a little, and have a better valued place to sell may work in your favor.

Best of luck!

2010-01-17 20:20:15 by Hmmm

Price: $19.95

I am expecting a student loan refund within the next couple of weeks. It is a Federal Stafford Loan. I am wondering if it would be okay to use it to pay off credit card debt. I would be able to completely eliminate my credit card debt with it, and it would really help lift some extremely high interest rates off my shoulders.

Any input would greatly appreciated!

I would say 'yes' you can. I didn't have to account to the financial aid office on how I spent my student loan refunds but I would like to tell you to keep this in mind. Credit card debt is an unsecured debt that if you had to----you could file bankruptcy on the debt if your income was within reason and what is allowed depending on the state you live in. However, STUDENT LOAN debt can never be discharged in bankruptcy.... I shouldn't say never, but it is very, very, very hard to do. It's as if your stuck paying for student loans until your old or die, haha... So why would you wanna borrow more money that your basically never going to get out of paying and paying it on a debt like credit cards? So I just don't think you should take your student loan to pay for a debt like that. But the one thing you didn't say was how MUCH credit card debt you had? If it is only like $500 - $1000, I would say go for it and pay the debt off.... Then, CUT UP that credit card or those credit cards and don't use them again... Credit cards will get you no where you wanna be... If you keep using them, they will only bring you many sleepless nights... Although I gave a long response, I really think the answer comes down to the amount of debt owed.... If you can pay it off without a large chunk of student loans... I say go for it, you will sleep better in the end... But don't be 'borrowing from Peter to pay Paul.' This won't solve anything in the end.... Your just shifting debts from one place to another and in the end............. don't forget------- They have to be repaid!!!!!!

2009-11-02 18:00:07 by jaycrazy

Price: $2.99

In the past three years i had a couple credit cards that i defaulted on, they proceeded to the collections process, but know i am ready to pay them off. Which would help my credit the most paying the companies directly (Capital One, Wells Fargo Visa) or is it ok to cut a deal with the people that call me all day from weird named collection agencies that now own the debt.

If the credit card companies actually sold the debt, rather than just assigning it to a collection agency, they won't accept payment from you. (If they did just assign it and still own it, you should definitely pay them, NOT a collection agency.)

In fact, I will take this a step further and say that you should never pay a collection agency under any circumstances, without requesting "validation" of the debt first.

Here is a sample validation request letter that you should always send before paying a collection agency:

http://creditrepairanddebtsolutions.com/ debt-validation-sample-letter/

IF they comply with the requests in that letter, and that's a big if, because many times they don't, you should then negotiate what is called a "pay for delete" agreement, which is outlined here:

http://creditrepairanddebtsolutions.com/ pay-for-delete-agreements/

PS--Please do not speak to any collection agencies on the phone under any circumstances! All communication with them needs to be in writing.

2009-06-26 20:23:27 by Rob C.

I owe about 25,000 in credit card debt, and the problem is I cant afford to pay no more then the minimum payment a month, due to my income. What would be the best thing to do?

Minimum payments are not going to get you anywhere.

You could get a second job, sell something, or ask for help from your family.

2009-09-28 18:36:48 by jessica_houston27