Monthly Payment on Charged Off Account -- is it worth it?

[amandak1026]

I've been paying $350 a month to a charged-off Wells Fargo student loan since 2012. I haven't missed any payments (have had to change the payment date a few times to make it work, but I've made it work). This account reports as charged off on my credit report every month.  It's frustrating to me that I've made ontime payments for nearly 3 years and it's not reflected on my credit report (I have no one to blame but myself, but it's still frustrating!), and now I'm kind of kicking myself for spreading myself so thin to make this payment when it's not doing much (if anything, really) in the way of helping my score.

I set the payment plan up because Wells Fargo wanted the payment in full, immediately, or they'd sue, and I wasn't going to let that happen (and they're scary and threatning on the phone, and I was freaked out!) 

Anyway, am i being stupid here? Yes, the debt is mine, of course I acknowldge that, but do I have any options as far as this is concerned? From what I've been led to believe, they cannot take the account out of charge-off status even if I am paying.  So then what's the point? (I certainly don't have the $9K+ i'd need to pay the thing off.)

Do I have any options?

[gdale6]

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@amandak1026 wrote:

I've been paying $350 a month to a charged-off Wells Fargo student loan since 2012. I haven't missed any payments (have had to change the payment date a few times to make it work, but I've made it work). This account reports as charged off on my credit report every month.  It's frustrating to me that I've made ontime payments for nearly 3 years and it's not reflected on my credit report (I have no one to blame but myself, but it's still frustrating!), and now I'm kind of kicking myself for spreading myself so thin to make this payment when it's not doing much (if anything, really) in the way of helping my score.

I set the payment plan up because Wells Fargo wanted the payment in full, immediately, or they'd sue, and I wasn't going to let that happen (and they're scary and threatning on the phone, and I was freaked out!) 

Anyway, am i being stupid here? Yes, the debt is mine, of course I acknowldge that, but do I have any options as far as this is concerned? From what I've been led to believe, they cannot take the account out of charge-off status even if I am paying.  So then what's the point? (I certainly don't have the $9K+ i'd need to pay the thing off.)

Do I have any options?

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By law they have to report accurate info and that includes updating the balance as you pay it down. Short of coming to terms on a settlement there isnt anything you can do to stop the monthly updating and its what is keeping your Fico depressed. Once an account becomes a CO its that forever going forward. The point is you are making an effort to deal with your past problems and make it right. Once its all paid off then it will stop updating and it can begin to age in the eyes of Fico.

[amandak1026]

Thanks for the response -- I figured there was nothing they could do to change the status until I paid it all off, but wanted to make sure. 

[bodybuilder510]

Settling it for less then full amount to zero out the balance quicker. Charge off will be updated to paid charge off. 0 balance. They may or may not add the settled in full description. I did the same thing and paid my charge off in full in order to avoid lawsuit or sold to another collection agency.

[Safe4Me2]

Hello gdale6,

I am in the same situation with Wells Fargo.  The only "good" thing about the monthly CO status on my credit report is seeing the balance decrease. I want to buy a house in 2-3 years so I figured I should periocically print and save hard copies of my reoprt to show the mortgage lender that I made regular payments on this account.  And when I get a windfall, I want to PFD!!!