SEttlement Payments

[Anonymous]

I have a number of outstanding credit cards of which I am making payments through special low interest rate programs.  So far I am able to make all of the payments and , if all goes well I will be all paid up in 4 years (or less).  Every once and awhile a card company will call and offer me a "settlement", usually 60% of the balance due.  One time it was 50% of the balance due (these settlements are still "on the table").

Should I pay off these settlements or just keep paying the low interest loan?  I have the understanding that, credit score wise, I would be better paying off the debt through the low interest loan program.  And that "settling the debt" would be a negative mark on my credit.

Any opinions?

[Wolf3]

If you settle for less than full payment, then you have see a charge off on the amount not paid on your credit report.   You will get a 1099 form next January to pay taxes on the amount charged off as income.   Your credit will be bad for 7.5 years.

I think you have (low interest and payments is much better).