Timeline for Should I accept a credit card settlement?
Current License: CC BY-SA 2.5
9 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Mar 16, 2011 at 21:03 | vote | accept | NeedAdvice | ||
| Jan 15, 2011 at 1:18 | comment | added | duffbeer703 | @NeedAdvice: I agree with the counseling people. You are 3 years away from paying off the debt, and 5 from having a clean credit record. If your goal is minimal credit impact, seems like the settlement doesn't make sense. | |
| Jan 14, 2011 at 21:39 | comment | added | NeedAdvice | The folks at the consumer credit counseling agency are against me taking the settlement, because, they argue that I am 3 years from paying off all my credit cards, but that the settlement will hang around my credit report for 7 years. I've told them, that in my opinion, my bad credit score has been hugely affected by the foreclosure, which will stay on the record another 5 years anyway. But they disagree. | |
| Jan 14, 2011 at 21:38 | comment | added | NeedAdvice | @duffbeer703, @stoj, @George Marian Bankruptcy is not an option since it would only get rid of credit card debt (which is a small part of my overall monthly obligations). The $4k in child support/alimony can't be wiped clean with a bankruptcy (plus, it would leave my kids & ex-wife in a massive bind). My credit cards are all 0 to 2 percent (i had them consolidated through a consumer credit counseling agency 2 yrs ago), so the issue is not whether I'll be accruing massive amounts of interest, but whether the settlement will affect me negatively in the future. | |
| Jan 13, 2011 at 17:21 | comment | added | duffbeer703 | I wasn't aware of the background... but the issue of marital/child support will make it difficult to pay things down. But... bankruptcy is a public record, which may have implications for an executive making $170k. On the other hand, living in the hood and not refreshing cars while paying off debt could be an issue for some high-power jobs too. I hope things turn out well in the end. | |
| Jan 13, 2011 at 13:23 | comment | added | stoj | That does change things a bit. Chapter 13 may be the best way to go especially if the foreclosure was a recourse loan. | |
| Jan 13, 2011 at 0:33 | comment | added | George Marian | @stoj There's some background of which you may not be aware. He is likely in a high tax bracket with his $170k income: money.stackexchange.com/questions/5543/… | |
| Jan 12, 2011 at 13:56 | comment | added | stoj | While it is true that forgiven debt is considered income you aren't going to be taxed 100% of the $5000 difference, you will be taxed at your marginal rate and considering the OP's credit he probably isn't in a very high tax bracket right now. Paying 15% of $5000 is better than 100% of $5000. | |
| Jan 12, 2011 at 12:06 | history | answered | duffbeer703 | CC BY-SA 2.5 |