topic Re: debt settlement and other options in Credit Cards

debt settlement and other options

Anonymous — Wed, 25 Feb 2009 21:27:23 GMT

I have recieved a tentative offer from my cc company offering either a debt settlement of outstanding principle or reducing the rate down to 0% if I can afford the mo. pmt and they agree. I am currently current on all obligations. However I am in trouble due to loss of income of about 50%

How will this arrangement affect my credit score. In other words, I have two scenarios to consider.

1) Debt settlement

2) Adjusting the rate to 0% and paying the outstanding principle.

of course BK is another option that an attorney advised. I don't want to file bk for obvious reasons.

lbenny2

Re: debt settlement and other options

Anonymous — Wed, 25 Feb 2009 22:00:25 GMT

If at all possible, I would choose Option #2 because I don't think it will have a dramatic effect on your credit history other than with the current bank with whom you have the debt. Selecting the debt settlement option will probably result in a notation on your credit report and could then have a domino effect with other companies running away from you, and may also cause a big score drop.

BK, of course, is a very bad selection for your credit history, but if you have no choice, then you have no choice....

Good luck!

Re: debt settlement and other options

Anonymous — Wed, 25 Feb 2009 23:56:04 GMT

I agree with Binks. #2 sounds good if you can afford the payments. It should have little to no affect on your credit report.

Krystofur