I have debt sold to a collection agency. I don't know when exactly it first went deliquent but it was probably between 5 and 6 years ago. It was about $1016 on a Capital One card. Since then I've had two other accounts with them. One where my card was cancelled for non-payment. I payed that one almost immediately after it was cancelled, in full. I also currently have a card with them and I know I'm doing well enough on my payments for them to have raised my spending limit.
In theory I could pay off the owed amount in full using some money that was intended as a buffer in case I run out of allowable student loans for school as well as any unexpected concerns after an approaching move. I don't intend to own a car or home anytime soon.
Since it was sold to collections I don't think I can do any more real damage to my credit report by settling it for less than the 1016 based on the faq. It does say I'll owe on my taxes but something I saw on Google said that if the settled amount was within a certain dollar amount of the original debt then it doesn't get reported on my taxes (600$ ish). Idk if that's true or not. I'd like to not have my refund tanked next year because my refunds at the moment are being used to take care of emergencies or delayed but important purchases.
I want the debt gone. I'd prefer to pay less, even if that means paying 70-80% that's still money to help with other concerns but I don't want it to bite me next year. Also, am I right about its impact on my credit?
Submitted June 15, 2018 at 08:34AM by leakybloodsink https://ift.tt/2tchIF5
