I am so glad I found this site- hope I am posting correctly-newbie here.
I was hurt at work 4 years ago and got into trouble with several accounts that I could not pay. I have since taken care of all accounts except one- Citifinancial account that was a Household Finance account. Account originally was $10K then with late fees, over-limit-fees, it is now $13K+. I have been paying the account every month with only 2 -30days late payments since that time.Household has marked the account as Closed although I am still paying every month. Almost all of the money I am paying is going to interest, it is not dropping at all. Monthly payment is $300. month. I have gotten a new job and have just gotten a bonus that could cover the balance, but I have been told by a couple of people that i should try to settle with the company for a lower amount since I have more than paid this account in the 8 to 9 years that I have had the account.
If I try to settle with CitiFinancial, how will my credit score be affected? Since the account is marked as closed already, will it be affected at all? I fully understand that I will have to declare the forgiven amount on my taxes for 2008 as income. I am really trying to increase my credit score to purchase a new home that is on one level so I do not have to climb stairs with a bad knee.
Thanks in advance to all who help!
