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:
- Looking for Landmines in your Credit
- The Debt Carnival
- Free TransUnion Credit Reporting Class Action Lawsuit
No Responses »
No comments yet.
RSS feed for comments on this post. TrackBack URI