Target - Better to do Payment Plan or Settle?

[Creditaddict]

I'm sure I know the best option but if someone could verify thoughts:

Currently have 2 Target Cards that are 6 months behind:

1.  $433.22

2.  $429.57

Both are $200 Credit Lines + the roughtly $30 in interest since none payment so that leaves $175-$200 in fees.

What I find backwards is I worked with Target on a 3rd account about 1.5 months ago and he waived 3 out of 4 late fees for a 75% payment and the account remains open with a $300 spend.  These 2 cards do not qualify for ANY fee reversal because they are so delinquent.  They will charge it off in less than 30 days or they will offer me a 12 month hardship plan to reduce payments to $13 for 12 months and interest to 9.99%.... However, they will not report the account current for 90 days (3 on time payments of the plan) so I will have 5 (150 Day Late) on credit report by then, then it would jump to current and I would be paying the current $175 in fees.

Should I take plan and pay it or charge off and then pay with collection agency as a settle.

Is the "Paid for less than full amount on charge off" really going to hurt or help my credit anymore than having 5 150 day late? (keep in mind if it charges off it will report with just 2 (150) day late and then the charge off.

I REALLY wanted to pay them like the other one I did but it really makes me mad that the bank (TD) now says they rather write off the account then waive any fees in order to have it paid.... This is a policy change as of May 1 with TD taking them over.  I realize that I did miss the payments so while I do agree the fees are true I just can't wrap my head around that I feel the damage is done and I want to pay what I owe (charged) but would like them to work with me a bit for doing so... should I just accept this is all mine regardless rather most banks would rather take money that was actually lost vs. not waiving any fees (not money lost) and take pennies on $ from collection agency who I can then pay basically what I want now (the actual balance I owed) 40% of the balance the collection agency will likely come with first.???

[LIGHTNIN]

A CO is considered as a major derog, but so are lates 90days and over. So either way, you will have a major derog.

The only thing about the plan with the debt going to the CA to settle is.........They may not  agree to settle or agree to a PFD.

Sorry to give you something else to think about.

I'm with you, I dont understand why they dont want to work with you, especially when you are willing to try.

Have you tried to talk with someone higher up?

[Creditaddict]

so yesterday I set up the payment plan on the one account for $13 for 12 months and they will bring it current on credit after 3 months.

THEN.... I called back for the other account and went through the same process with income, why behind, etc. for trying to set up the same plan and after a few questions he says could you pay one lump sum? I said like? In the end he could settle the account for $260.  I said, If you removed $150 out of the $175 in fees that would leave me paying about $280, so the bank would make out with more money and I would make out with fixing an account and not having a "Settled for less than full balance" on my credit report.  He said "We won't waive any fees!"

I was like okay, now we are just messing with langauge if you are saying you won't waive fees but offer a settlement for less.  I said so the bank wants to take some money and be able to write off on the books a portion of the money too over helping a long time customer.

I then said, "Okay I rather eat the fees and I will do the hardship and make lower payments for a year and pay the entire balance with nothing removed." He said "I'm sorry but the settlement would be the only thing I would have to offer you!"

I was speachless by the end of the call and I apologized to him for anything I said that was being given to him by the "computer" that was programed by who knows who where in the company that is out of touch of the point of hiring warm bodies if it's going to be a computer doing everything.