Final Settlement for Credit Card with Default

bris

The reason to settle is because of the high interest you are paying for the pleasure of having the debt. It makes no sense at all to settle a personal loan over a CC if the CC has a higher interest rate, the concept is simple, pay what is costing you the most.


They wont do deals with people who pay, stop paying, get another default then ask for a deal, they usually deal then when it looks like they will get nothing, but that does more harm than good.

boo_star

bris wrote: »

The reason to settle is because of the high interest you are paying for the pleasure of having the debt. It makes no sense at all to settle a personal loan over a CC if the CC has a higher interest rate, the concept is simple, pay what is costing you the most.


They wont do deals with people who pay, stop paying, get another default then ask for a deal, they usually deal then when it looks like they will get nothing, but that does more harm than good.

You can't be defaulted twice, but you should know this.

glentoran99

Anthorn wrote: »

This is probably not what everyone else wants to hear but may help the OP.


First of all, exercise caution on whether to settle a defaulted account. Based on my own personal experience, it's pretty much agreed that defaults drop off the credit history after 6 years. Also agreed is that a settled account remains on the credit history for 6 years after the settlement date. But a default which has dropped off doesn't come back when settled. Think about it.


I settled a default after a year and it was on my credit history for a total of 7 years!


On repaying, if you wait for an offer to settle the debt at a reduced cost you'll wait for ever. Make your own offer and if it's reasonable it will be accepted. But be very careful of doing that where an account is close to being statute barred because you'll break the statute barring and the 6 years will start again.

that is incorrect, it should have came off your report 6 years after default whether settled or not