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Should I accept a settlement offer

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Anonymous
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Should I accept a settlement offer

I am trying to help my wife pay off some credit cards. She has one card with an $8000 balance which reports her over 30 days only once  this was  just last month as she did not bother making a payment knowing I was going to pay it off.
 
This account is only in her name and not reported under my credit report
 
Question is since it has been reported negatively will it make any difference if I accept the companys offer to settle it 90% of the balance? The debt is not into collection or anything like that yet  only that it was over 30 days once.
 
I was also told by the company that she would receive a 1099  for the settlement amount and would have to report that as income on her taxes  for the year. Is this true?


Message Edited by kenneymcc on 04-04-2007 08:58 AM
Message 1 of 4
3 REPLIES 3
Anonymous
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If it will keep it from going into colelctions I would ta...

If it will keep it from going into colelctions I would take it.  It may report settled in the comments but as far as I can tell the comments really have no big impact on the score.  It comes into play when someone is really looking at the report.
Message 2 of 4
Anonymous
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Its not a matter  of going into collection or not  I full...

Its not a matter  of going into collection or not  I fully intend to pay the account off and zero the balance. I just don;t know if saving the $800+ dollors  to settle the account verses paying the balance in full is worth doing.
 
I never considered this until they ask me when I called to get the payoff balance is I wanted the current balance or a settlement amount.
Message 3 of 4
Anonymous
Not applicable

Is the account still in good staning besides the thirty d...

Is the account still in good staning besides the thirty day late?  Ask how it will be reported to the bureaus.  If they will just report paid and closed by consumer I would take it. Otherwise pay the full balance
Message 4 of 4
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