Got debt?
With the economy slugging along and the job market tightening, there’s plenty of room for growing debt. My credit cards are in hiding, but my monthly statements keep showing up. Sure, one day I hope to buy a big house with a white fence, and to keep the dream alive I have to keep the D word from appearing on my credit report – delinquent. So, I have to work hard and make my monthly payments to Visa, American Express, Target….
However, paying off an outstanding debt, or charged-off debt, can actually hurt your credit score. Some people choose to pay off an old debt through a structured settlement. In many cases, the structured settlement broker agrees to let you pay off the debt at a lower amount. Great, right? Maybe. On one hand, it’s always a nice feeling to get that weight off your shoulders and close an account. On the other hand, the deal appears on your credit report as a settlement – and that can hurt your credit score. And, if you paid less than the original amount owed, you may have to claim the difference on your taxes.
In any event though, having “Charged-off Paid” or “Charged-off Settled” noted on your credit report is far bette than just ”Charged-off.”
Related Posts
Part 8 – Final Audit and Funding
Congratulations! The judge has approved your transaction and it is time to do one final review of the file so we can put some much needed money into your bank account. At this final stage of the file, there are a few things that have to be done. First, we will obtain a signed and [...]
Read morePart 7 – Court Order Process
Now that we have all of the documentation needed to go to court, it is time to prepare the documentation needed for filing of the court action. Typically, the court action will take place in the County and State in which you reside, but this will depend upon your individual State Statutes, if any. To [...]
Read more
