Life after seatlment

ssphoenix · #1 (**permalink**) 02-05-2008, 05:48 PM

Not sure if this has been answered. I am in the process of settling one of my credit cards. I'd like to find out what will happen with my credit score, will I ever be harassed in the future, will I be able to apply for other cards, car, home loads,,, etc.

Please no smart comments.

Thanks

AMJ21 · #2 (**permalink**) 02-06-2008, 07:13 AM

If you're going to pay negotiate PFD. Make sure you get it writing. Nothing verbal. This will eliminate it from your CR.

ssphoenix · #3 (**permalink**) 02-06-2008, 05:17 PM

Thanks for your reply AMJ21. I am doing that. However, I was told that since there is not a dollar to dollar repayment, there will be penalties. No one seems to know what those would be and that is one of my questions. Just want to make sure there are no further down the line consequences. How long my credit will be shot (or partially), and how can I fix it.

Thanks again for everyone's help.

AMJ21 · #4 (**permalink**) 02-06-2008, 07:16 PM

Quote:

Originally Posted by ssphoenix

However, I was told that since there is not a dollar to dollar repayment, there will be penalties.

How can there be? PFD = Pay for Deletion. Deletion is just that, GONE.

If it's removed from your report how can it hurt you? If that's what you negotiate it's as if it never existed. Just make sure they give it to you in writing, then pay - not before. Good luck.

InDebt130 · #5 (**permalink**) 02-09-2008, 11:41 AM

I am in the process of settling about 130k in debt and I should be able to get it down to about 40k total. Lucky I found a out how to get low settlements. I know that you do need to get everything in writing before you pay out the creditor or collector. Also keep it on file because apparently it is not uncommon for them to call you after you have settled. That way all you have to do is fax them the info you saved and they will go away. If you pay about 85% or higher on the settlement than I hear they will remove it from your credit report but if you settle for 50% or lower they will usually not remove it from your report. You can dispute the claims with the credit bur. and hope that the collector or creditors do not reply within 30 days and then the bureaus will have to remove it from your file.

Matthew