I was recently surprised with a letter from a debt collector. I realized I made a mistake and I owe the money. I called the debt collector and asked them a few questions about how I could pay. I asked if I could pay it online (there was a web address on the letter I received). The representative I talked to said yes, but then they proactively offered to settle for less with them right then and there on the phone. The amount they offered me was 21% less than the original amount. The money is not an issue for me, I can pay the balance in full. I was surprised they offered a discount without me even asking for it. I asked the representative "if I agree to settle, will this report on my credit as paid in full?" she replied that it would. I was suspicious it would not and advised I would like to get an unbiased opinion before accepted the settlement. A two second Google search shows this on Experian's website:
It is always better to pay your debt off in full if possible. Although settling an account is typically viewed more favorably than not paying it at all, a status of settled is still considered negative. Settling a debt means that you have negotiated with the lender, and they have agreed to accept less than the full amount owed as final payment on the account. The account will be reported to the credit bureaus as "settled" or "account paid in full for less than the full balance." Any time you don't repay the full amount owed, it will have a negative effect on credit scores. The "settled" status will remain for seven years from the original delinquency date of the account, or if the account has never been late, it and will stay on your credit report for seven years from the date it was settled.
What is everyone else's opinion?
TL;DR: I care most about my credit score. I was proactively offered a debt settlement from a debt collector. Should I take it or pay the balance in full?
Submitted January 15, 2019 at 09:57AM by TheRealShamu http://bit.ly/2CnUZdH
