topic Re: Should I pay the debt or let it charge off? in Rebuilding Your Credit

Should I pay the debt or let it charge off?

MichaelMyer — Sat, 07 Feb 2026 14:52:03 GMT

Finally ready rebuild my credit. I have a credit card with Milestone that's 90 days past due, approaching 120 days. The total amount owed is $1500. The minimum payment right now is $390, which I don't have. I called to see if they could take off some of the outrageous late fees, $41 each, so I could get current. But I have to bring it current before they'll do that. 🤪

I'm thinking maybe I should let it charge off and then try to settle the debt for less than I owe. My score is already tanked in the 400's so it won't do much more damage. What do you think is a good course of action here?

Re: Should I pay the debt or let it charge off?

Patient957 — Sat, 07 Feb 2026 15:59:52 GMT

@MichaelMyer wrote:
Finally ready rebuild my credit. I have a credit card with Milestone that's 90 days past due, approaching 120 days. The total amount owed is $1500. The minimum payment right now is $390, which I don't have. I called to see if they could take off some of the outrageous late fees, $41 each, so I could get current. But I have to bring it current before they'll do that. 🤪

I'm thinking maybe I should let it charge off and then try to settle the debt for less than I owe. My score is already tanked in the 400's so it won't do much more damage. What do you think is a good course of action here?

If you're facing a new charge off in the near future, that doesn't sound to me like being ready to rebuild.

As to your question should you pay it or let it charge off, I'm not sure why you ask, since you state in your post that you're approaching 120 days late and don't have the $390 for the minimum payment. So is there really an option to pay it?

How long has it been since your last charge off?

Re: Should I pay the debt or let it charge off?

CreditCuriosity — Sat, 07 Feb 2026 16:14:04 GMT

Just curious if ready to rebuild your credit but ready to let only a 1500 dollar debt charge off? $1500 isn't much money to be honest. Maybe it is for some. Sounds like you likely should be using debit/cash vs having a credit card as a side hussle for a month or two can pay that 1500 off easily and prove to other lenders that you aren't going to do the same to them and let it charge off and goto collections. Keep in mind they can sue you as well and garnish wages if they so choose..

Re: Should I pay the debt or let it charge off?

FicoMike0 — Sat, 07 Feb 2026 23:36:07 GMT

I'll have to agree, doesn't sound like a rebuild.

If you're asking if a charge off is going to hurt, no, 400 is pretty bad already. There's the possibility that they could sue to consider, settling for less would eliminate that threat. It might also help your scores some in the future, but maybe credit isn't for you.

Re: Should I pay the debt or let it charge off?

SusanJA — Mon, 09 Feb 2026 22:49:29 GMT

Letting it charge off would be very bad for your credit. You should ask customer service about a payment plan that allows you to get current.

Re: Should I pay the debt or let it charge off?

IcyCool7227 — Tue, 10 Feb 2026 05:49:21 GMT

How did your score get into the 400s? It must have been more than one charge off.

Re: Should I pay the debt or let it charge off?

MichaelMyer — Tue, 17 Feb 2026 01:13:48 GMT

UPDATE: The creditor reached out to me and asked if I'd like to settle the debt for $475! I jumped on it the same day and accepted. I also settled another loan this week. I now have nothing currently reporting as late but I have old charge offs that I'm going to work on.

My score got into the 400's because of a divorce.

Re: Should I pay the debt or let it charge off?

E36 — Wed, 18 Feb 2026 17:59:35 GMT

@MichaelMyer wrote:
UPDATE: The creditor reached out to me and asked if I'd like to settle the debt for $475! I jumped on it the same day and accepted. I also settled another loan this week. I now have nothing currently reporting as late but I have old charge offs that I'm going to work on.

My score got into the 400's because of a divorce.

Was that your only debt? If so your score hsould jump and you should be able to start rebuilding and get to 600s in no time.

Re: Should I pay the debt or let it charge off?

1lifeisworthit — Fri, 20 Feb 2026 13:57:16 GMT

I find your question curious. If you CAN pay it, then you obviously should. Because you gave your word you would. You can ask for a settlement so that you aren't paying the full amount if that's what you want to do, sure. You can ask.

But if you CAN'T pay it, then why is paying it even a thing in your post????

No one says, "Should I pay when I can't pay?" because if you can't, you can't, and offering to pay doesn't happen when you can't.

The fact you ask, means you CAN pay it. So obviously you SHOULD.