Comments on: How should I pay off my credit card debt when I just received a lump sum of money?

By: Allison

Allison — Thu, 03 Dec 2009 20:11:15 +0000

If you have the money, you need to pay off the debt in full.

I believe that when you owe people money, you should pay it. I never base financial decisions on what it might do to my credit score.

If someone owed you money personally, I think you would want them to pay you in full.

The only exception I could think of would be that if you are no longer capable of working, and this is the only money you may be getting.

By: tonian

tonian — Wed, 02 Dec 2009 21:45:19 +0000

Agree with Lisa L. You’ve already been flagged as a credit risk (although you probably don’t know it if you haven’t applied for credit recently), so you should simply go ahead and settle the full amount. It’s very unlikely that the credit card company will let you settle for a lesser amount, although it doesn’t hurt to try.

By: Lisa L

Lisa L — Wed, 02 Dec 2009 12:54:14 +0000

I’d just go ahead and settle with them. Your credit/Fico score is already in the toilet. Settle and save yourself some money. And DON’T get into that kind of debt again. Pay cash next time, with some of that money you have. Put a chunk into savings too, don’t fritter it away.

By: CrazyKayFreak

CrazyKayFreak — Tue, 01 Dec 2009 03:20:16 +0000

Whichever is best for your credit. If you settle for a lesser amount, I don’t think it affects your credit any more negative than if you pay the full amount. If it’s paid, it’s paid. And that should be what shows on your credit report???

By: Brandon

Brandon — Sun, 29 Nov 2009 05:09:27 +0000

Your credit is already messed up.

If they are willing to settle, get a letter from them saying the debt will be satisfied and they will accept a lesser amount.

Get the agreement IN WRITING!!!

Your credit probably shows as charged off anyway…with you paying a settled amount, it should show as paid after charge off, settlement accepted, or something to that effect. Showing that it is satisfied will benefit.

By: David Z

David Z — Wed, 25 Nov 2009 22:54:29 +0000

good idea to try and settle. if they would settle for 25-50% that would be a nice break for you.

the settlement will be a ding on credit report but probably not much worse than has already occurred.