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  1. #1
    Join Date
    Apr 2008
    Posts
    1

    Default Is It Worth Settling A Defaulted Debt?

    Hi All,

    I have a credit card debt which, although I am repaying monthly, has defaulted because the creditor didnt officially accept the monthly repayment offer.

    My question is:
    Is it worth offering to settle this amount to get some shaved off, if so when the defaulted credit shows as settled; will the default still be there for the full 6 years to haunt my credit score or will it be lifted once settled?

    Many thanks,
    Alex_W

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Is It Worth Settling A Defaulted Debt?

    You can pay it in full, try to negotiate a lesser payment in satisfaction of the debt, or do nothing and see what happens.

    If you want to try to negotiate a "pay for delete" agreement, where your payment results in the removal of the debt from your credit report, get it in writing before you pay. I doubt that the creditor will agree to do that, but it can't hurt to try.

    If you negotiate a payoff for less than the total due, find out if they will be issuing you a 1099-C for the difference, creating tax liability for you.

  3. #3
    Join Date
    Apr 2008
    Posts
    3

    Default Re: Is It Worth Settling A Defaulted Debt?

    Mr. Knowitall,

    Do you have experience in Debt Settlement?

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