Care Credit- Settle or pay off options

[Cutieprincess]

I have a care credit card with 4 missed payments. The account was closed back in 2023. I'm a college student and got behind due to medical reasons. I've been offered to pay a low minimum payment with no interest for 60 months or pay 50% of the balance in three payments. 

As someone who's only 22 yrs old, does one have longer negative ramifications than the other? With the account already being closed, does it matter much which option to choose? 

[GZG]

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@Cutieprincess wrote:

I have a care credit card with 4 missed payments. The account was closed back in 2023. I'm a college student and got behind due to medical reasons. I've been offered to pay a low minimum payment with no interest for 60 months or pay 50% of the balance in three payments. 

As someone who's only 22 yrs old, does one have longer negative ramifications than the other? With the account already being closed, does it matter much which option to choose? 

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paying resets the SOL, so if you start paying and then stop paying, you can be sued on that remaining balance

but in FICO terms, as long as the balance is paid, FICO does not care if you settle or not, the damage from the lates/charge off is already done. the sooner you can be at a point where you have no more delinquent debt reporting every month, the sooner your credit can start to heal.  

from a personal standpoint, if you can settle in full and make those 3 payments and settle the balance in full, do that.

too much can go wrong in 60 months. 

[CreditCuriosity]

Take the 50% settlement as mentioned each payment reeets the SOL.  Obviously if you choose to do neither worse things could possibly come.  Sounds like you can do both so take the least painful option being 50%

[Cutieprincess]

Thank you! I chose the settlement option already, but wanted to  feel confident in my decision. I was given three days to change my mind. Enjoy your weekend! 

[AndrewF]

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@CreditCuriosity wrote:

Take the 50% settlement as mentioned each payment reeets the SOL.  Obviously if you choose to do neither worse things could possibly come.  Sounds like you can do both so take the least painful option being 50%

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Depends on what you have to lose if they sue you. If you're utterly broke just keep ducking them and wait for the statute to run out and then continue to never talk to anyone who calls about it.

If they're saying pay us 50% or we will sue you, then you should pay 50%, but mind you it's illegal to threaten to take an action they don't plan to.

[AndrewF]

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@Cutieprincess wrote:

Thank you! I chose the settlement option already, but wanted to  feel confident in my decision. I was given three days to change my mind. Enjoy your weekend! 

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The fact that you agreed to anything has already reset the statute.

[ForwardLooking]

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@AndrewF wrote:

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@Cutieprincess wrote:

Thank you! I chose the settlement option already, but wanted to  feel confident in my decision. I was given three days to change my mind. Enjoy your weekend! 

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The fact that you agreed to anything has already reset the statute.

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Not nesicarily, it really depends on your State.  For example, in Texas, making a partial payment or ackowledging a debt will not reset the the SOL clock.