@huntersimp wrote:I had an Elastic credit line (I know I never should have opened this) that just charged off.
They are offering a settlement of 60%. My question is...since it has already charged off, if I settle...will it negatively affect me more than it already has?
As of right now, I will not need to apply for credit in the next 8-12 months. So, should I just settle or try to pay the balance? Paying the balance will be difficult.
Any advice is much appreciated.
Will they delete if you PIF? Heck, will they delete if you pay then 60%?
There are 2 problems with paying for less:
- Your credit will show the CO for 7 years. It will show you settled for less. On the flipside a CO is CO reguardless of the status.
- You will get a 1099, meaning that 40% would be considered income and will become taxable.
Keep in mind a collection company did not pick this up, and you received no judgments yet so to answer your question, taking care of this will not further have a negative effect past the CO reported.
Before you pay, always get the offer in writing.
