Re: Credit Card debt

Posted by Drew (24.59.27.46) on October 21, 2003 at 17:22:43:

In Reply to: Re: Credit Card debt posted by larry on October 21, 2003 at 16:10:06:

Paid in full means you pay the entire balance due plus whatever interest charges you incur.

Settled in full means that you agree to a settlement offer for something like 50-85% of the entire debt and the collection agency, creditor, whoever has the bill agrees that you owe no more and will enter it as settled in full. When an account is paid in full, it cannot be sold to another collection agency or creditor. When the creditor agrees to settle in full, you are not paying the entire debt in full, but they also will agree to call it even and not sell the account.

If you merely settle, the creditor, collection agency will just merely turn around and sell the remaining portion of your debt to another collection agency who will add their fees and costs and interest penalties all over and the cycle begins again.

Bankruptcy 7 is where you are insolvent and you don't pay your creditors back. Bankruptcy 13 is where you agree to pay back all your creditors a portion of what you owe but not all of it. IT still gets entered on your credit report but not for as long as the Chapter 7.

You still have options.

A charge off is where the creditor is mandated by the government to view an account as uncollectable. A charge off is where the creditor writes it off. If a creditor writes off the account, it looks really bad. The charge off then either gets assigned to a collection agency, or sold to a collection agency.

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