If the debt is already in collections it is really behind..it is not going to hurt. That information stays on there for 7 years anyway. Better to have paid something rather than "0"....and you can get them to put settled but satisfied...request it in writing when you get the settlement.
Typically, it is better to settle an account than to let it remain unpaid - most of the time. There are some considerations to view...
If the debt is several years old already and your creditor is NOT planning to sue you, you may just want to let it ride until it falls off of your Credit Bureau Report (CBR). The last time you do anything related to a debt (like make a payment, settle or pay in full) you re-start the 7.5 year CBR clock.
When you settle an account your credit report will reflect "Legally settled for less than the full balance" under the appropriate tradeline. A settlement tells every risk manager that looks at your credit report for the next 7.5 years one very important thing: you are a person that borrows money BUT you don't pay it all back. That makes you a MUCH higher risk than someone who pays their balances in full. You may not be turned down for credit in the future, but face the fact that because you are a demonstrated risk (you don't fulfill your promises to pay all of what you owe) you will probably not be considered for the more favorable interest rates available.
If the account is with the original creditor who reports your payment history to the Credit Rporting Agencies you may derive some "consideration" in the way they report your settlement. If the debt has moved to a collection agency you will have less negotiating room because they are typically NOT subscribers and do NOT report payment history. They just want your money and employ interestiing tactics to achieve their goal. (If you can read between the lines you should sense that your financial stress went up).
There are numerous websites where one could find more information about settling one's debts. Consumer.ftc, Credit, and No More Debts are just a few of those sites.
A top rated credit management company is a firm that has excelled in the field of putting companies and individuals credit status right by settling debts and resolving financial disputes.
it would really depend on the age of the debt, if it is more than 6 months, leave it alone. By settling it it becomes current news not old and forgotten. It will make you feel better about paying your debts but will actually harm your credit score. You'll sleep better at night but your credit won't.
bankrupcires stay on for 10 yrs. But when you gfinalize the bankruptcy the debts are automatically removed anyways.
If you work with Care One Credit, it will positively effect your credit score. This will show you can pay your debts and you won't have any black marks.
Scores credit is a very serious subject that should not be taken lightly. It is virtually impossible to get exceptional terms on loans if you have a low credit score. This is the primary reason why one should take measures that will help them maintain or improve their credit score. Settling old debts with creditors is a simple way of removing negative information from your credit file. Many creditors will be open to wiping out your debts by settling for nearly half of the original amount owed. Settling old debts can increase scores credit within a matter of weeks.
Yes it does
There are numerous websites where one could find more information about settling one's debts. Consumer.ftc, Credit, and No More Debts are just a few of those sites.
yes if your daughter has debts that she has listed to your address it can affect the whole households credit
A top rated credit management company is a firm that has excelled in the field of putting companies and individuals credit status right by settling debts and resolving financial disputes.
it would really depend on the age of the debt, if it is more than 6 months, leave it alone. By settling it it becomes current news not old and forgotten. It will make you feel better about paying your debts but will actually harm your credit score. You'll sleep better at night but your credit won't.
bankrupcires stay on for 10 yrs. But when you gfinalize the bankruptcy the debts are automatically removed anyways.
If you work with Care One Credit, it will positively effect your credit score. This will show you can pay your debts and you won't have any black marks.
No, it does not really die with the individual, but it could. The estate is responsible for settling any debts of the deceased. If the assets of the estate aren't enough to cover them, the debt will be discharged.
No, it does not really die with the individual, but it could. The estate is responsible for settling any debts of the deceased. If the assets of the estate aren't enough to cover them, the debt will be discharged.
The debts properly belong to the "Estate" and if you are inheritor of the estate then you can be held responsible to pay the debts. Under estate laws the estate must pay its debts. Normally when the amount of debt outweighs the liquidatable portion of an estate you can 'make a deal' with them to pay off a percentage of the debt. If they will not work with you then you can file bankruptcy on behalf of the estate, and force them to accept that amount, less all fees for bankruptcy (IE: a lot less than they would have gotten). Note however that they cannot affect your credit or your credit score, as the debts are not properly attributable to you.
No, if it is a personal loan. Still, think of it this way, a poor credit rating with your family could be worse (you know what I mean).