Showing results for 
Search instead for 
Did you mean: 

Debt Pay Off and Settlement: Attack Plans

Regular Contributor

Debt Pay Off and Settlement: Attack Plans

Hello. Folks,


Good evening. I am starting to work on rebuilding my credit. The screenshot below gives you pertinent details about my current baddies (still working on removing some lates from other paid/closed accounts). Almost all accounts were opened between 2014 and 2016, and went delinquent around 2018/2019.




I’ve divided my debt into 3 categories: majority of the accounts are closed and charged off. Most of these charge-offs are already assigned/sold to various collections agencies, of which 1 (Portfolio Recovery) has already reported to the CRA. The other charge-offs are still being hunted for by the OCs.


Currently, I am spending about $700 per month on various debt obligations (my current 3 credit cards, and other payment plans with Zwicker and Midland). I expect some extra $4K coming in between June and July). I am wondering what would be (close to) optimum way to disburse it on my debts. In the “Attack Plan” column, I am planning to propose a settlement for those balances below $1,000, and arranging a fixed payment plan with the other larger balances.


I would be very grateful for some input into my plan. Any other ways of reducing the effect of the charge-offs? Given that they are already derogatory, would a settlement be much worse?


Thanks in advance for your thoughts !


Cheers, Oy

Message 1 of 3
Valued Contributor

Re: Debt Pay Off and Settlement: Attack Plans

Just from my experience, the smaller the balance on the CO/CA, the less likely they are to settle for much lower. I feel like larger-ish balance get bugger discounts. I still say certainly try starting low, but temper your expectations on the lower balances.


I have a small debt with Midland, outside of both the SOL and the 7 year reporting window, and the best offer I have cutrently from them is for 10% off the balance for lump sum payment. This is for a balance sub $300. Most every debt I have had under $1k has had little wiggle room, even closing in at the 7 year mark.


This is not to be discouraging at all. I would definitely work on settling and if needed, work your way up the management chain, don't just settle for the first phone call or a frontline representatives "no". 


Good luck!

Starting Score: 2•20 | EQ 550 | TU 498 | EX 505
Current Score: 4•21 | EQ [F8 651] [F9 645] [EQ5 678] [VS3 630] | TU [F8 713] [F9 684] [TU4 721] [VS3 639] | EX [F8 640] [F9 651] [EX2 655] [VS3 625]
Goal Score: 670 [X] TU

Take the myFICO Fitness Challenge

SO Starting Score: 2•20 | EQ 502 | TU 484 | EX 521
SO Current Score: 4•21 | EQ [F8 661] [F9 620] [EQ5 677] [VS3 627] | TU [F8 684] [F9 658] [TU4 639] [VS3 625] [VS4 666] | EX [F8 712] [F9 684] [EX2 669] [VS3 642]
Goal Score: 670 [X] TU [X] EX

Take the myFICO Fitness Challenge

Message 2 of 3
Regular Contributor

Re: Debt Pay Off and Settlement: Attack Plans

Thanks so much, LaHossBoss:  It makes sense to shoot for better settlement with the larger debts.   I did receive some offers from Monarch (for two Synchrony Accounts)... here are they>






Any suggestions for offers for each?  I hope to start some negotiations with them later this week, and would be very grateful for some input about the above offers.


thakns - Oy



Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.